The primary goal is to replicate the colored knitting pattern shown at the top of the screen. To do this, you must first create spools of colored thread by solving the puzzle on the grid below. Merge discs of the same color and number by dragging one onto the other; this combines them into a new disc with a higher number. Continue this process for a single color until the disc reaches the maximum number (in this case, '8'), at which point it transforms into a spool of thread. Finally, drag the completed spool from its holder and apply it to a corresponding colored square in the knitting pattern.
Some squares in the pattern are marked with a question mark, indicating you must deduce the correct color. Applying the wrong color will waste the spool, so it's a process of trial and error. Strategically manage the limited space on the puzzle grid by planning your merges to avoid filling it up and getting stuck. Be mindful of your limited lives, as incorrect moves can deplete them.
It's often helpful to focus on creating one color at a time to clear space and simplify the board.