A Note of Thanks: I am using all kinds of neat mods and techniques that I have collected after reading project notes of many truly expert knitters here on Ravelry. A huge thank you to all of you :-)

Sept 16, 2017 - Start with a tail long enough so that you have about 12 inches of tail remaining after the cast on.
You will need this to cast on another 12 sts later on.

German Twisted Cast on 42 sts with US 5 (3.25 mm) straight needles. Transfer sts Addi 3mm circular needles for the knitting, beginning first row.

Slip the first st of every row after the first knit row so as to make picking up sts easier later on (this is a tip other knitters have mentioned many times in their projects). All sts are slipped purlwise.

Follow pattern as written until the Heel Flap. Don’t BO sts after the increase row.

Heel Flap - This is worked on the middle 12 sts for 12 rows. We will count 12 rors starting here.
R1- sl1, k29, turn.
R2 - sl1, p11, turn.
R3 - sl1, k11, turn.
Repeat R2 and R3 for 4 more times (total of 8 rows
) ending with a RS row. Work R2 for one last time. This is in all 12 rows of knitting the middle flap of 12 sts.

At this point there are 18 held sts on either side of the middle 12 sts. Total 18 x 2 + 12 = 48 sts.

Picking Up Stitches - Row 13 (RS) - sl1, k11, pick up & knit 6 sts evenly from the side of the heel flap. Knit 1st held stitch, pass the last picked-up stitch over. Turn. This tightens the corners.
Row 14 (WS): p18 (no slipping 1st st), pick up & purl 6 sts evenly from the side of the heel flap. Next, purl 1st stitch of held stitches, pass the last picked-up stitch over.
Turn.

(At this point there are 17 held sts + 24 middle sts +17 held sts = 58 sts total sts on the needle). The 17 sts on either side are still being held as is; they will be worked next.

Then, starting with the right side:

0A: Slip one, knit to 1 stitch before gap, ssk; turn. 0B: Slip one, purl to 1 stitch before gap, p2tog; turn.

The above two rows are worked just this once.
There are 16 held sts on the two sides at this point.

1A: Slip one, knit to 1 stitch before gap, ssk; turn. 1B: Slip one, purl to 1 stitch before gap, p2tog; turn.
2A: Slip one, knit to 1 stitch before gap, sssk; turn. 2B: Slip one, purl to 1 stitch before gap, p3tog; turn.

Attention - Note the extra decrease in rows 2A and 2B.

Repeat these 4 steps 1A to 2B, until there is one held st on either side.

Then repeat steps 1A - 1B once more.

24 stitches are now on the needle and all 22 held stitches have been incorporated. End of Section 5.

Cast On Instep - sl1, k11. This is the new beginning of round. If working with circular needles and magic loop, divide sts here. Pull up back needle and start working in magic loop.

k12, pick up 7, pick up 3, twist ball yarn and tail once to tighten corner (if needed), german twisted cast on 12, join gap and pick up 3, break for magic loop by pulling working needle, pick up last 7 sts. Pull working needle and knit to the end of round. At BOR put 28 sts on front needle and another 28 on the back needle.

Once I came to the beginning of round, I did
k19, p9, divide sts for magic loop, p9, k19 for 3 rounds.

On the first knit all round I decreased 2 sts as follows:
k10, k2tog, k16, break for magic loop, k 16, k2tog, k10 (54 sts on the needle). I put a marker on this first knit row so that I can easily count the number of rows before the toe decreases begin.

Then knit around for 3 more rows.
Next row (Row 4) - k20, pm, k13, pm, k21.
Rows 5 - 20: Work the heart motif on the 13 sts within stitch markers.

Knit 3 more rounds before toe decreases (that measures 6.5 inches from the heel).

Toe Decreases - For the first row I did - k11, k2tog, k1, pm, k13, pull needle for magic loop, k11, k2tog, k1, pm, k13.

Then I followed toe decreases as per pattern starting with the usual alternate row 4 stitch decrease starting from the 42nd row. Ended with 12 sts on each needle. Knit one last round and grafted with Kitchener stitch using this video.