The base is knit back and forth in garter-stitch, then stitches are picked up and the bunny is knitted in the round. The tips of the ears are grafted. Yes, it’s seamless - no sewing up!

Please see the comments if the instructions are too confusing. ;-)

November 28, 2017: I was asked for a crochet version, which I don’t have, but following the written pattern, I created a chart of one side (see photos, this chart has not been tested). I imagine that this chart could be used to create a crochet version. All one has to do is add the edges, which is a simple strip that runs all around the piece, and the opposite side.