I use this pattern by using a single crochet in all the white spaces and back or front post double crochet in the blue spaces. To make the letter Z pop out, I do those stitches in back post double crochet on the even numbered rows and in front post double crochet on the odd numbered rows. You could also use this chart to make a blanket using two different colors in either single crochet or Tunisian crochet. It would probably work for knitting as well, but as I don’t knit I can’t be completely certain!

After finishing the blanket, use a border of your choosing!

For a clean finish and to make the letter “pop” even more, I steam block my blankets, slightly stretching them to an even size and paying particular attention to the edges of the letter within. I often iron around the edges of the letter as well - just be careful not to melt the fabric!