You know, they're all the rage. They're soft, squishy and beautiful. They're also a pain in the backside to make. Oh, they're easy enough to do, once you get the hang of it, but they're still a pain. If you Google 'ruffled scarf tutorial' you can find any number of youtube links showing you how to knit these. Here's one where the tutor is going very slowly and explaining each step. She's even using the same yarn I am, from the look of it. Red Heart Boutique Sashay in the Waltz colorway.
Ruffled Scarf Tutorial
The only differences are that I'm holding the yarn in my right hand, it's how I'm used to holding it. And when I cast on, I skipped two loops, meaning I put every third loop on my needle and used six loops. I continued to knit every third loop. I now have about two feet of it done. It's got a looser ruffle than hers, but I like it. I'm also using a size 10 US needle. I may try a tighter ruffle some other time.
A few words of advice:
Do NOT use slippery needles. In fact, a sixteen inch circular needle would be better. Bamboo needles aren't slippery and will help you not to drop stitches. I recommend this if you plan on putting your work down. I learned this the hard way when my needle slipped out of all the stitches and I had to carefully rip back to a row that didn't have a dropped stitch on it. Also, I found out it's easier to hold both needles in one hand while you're making each stitch if you use a circular.
If you plan on sitting there from start to finish, then straight needles will be fine. Otherwise, use a circular so that you can just push the stitches down onto the cable if you put it down. Oh, and don't worry about whether you're doing it right or wrong, just be consistent.