Mitred Squares, also known as Domino Knitting, also known as Modular Knitting - some of the names for this great patchwork technique.
Yes, this shrug is knitted in squares but there are no seams to sew. Each square is picked up from those around it. The back is worked flat and the sleeves are worked in the round.
The shrug can be worked in any DK-weight (US lightweight)yarn. The sample is made in Jager Matchmaker DK. It could also be worked in multi-coloured, or hand-painted, or colour change yarn which will emphasise the different directions of knitting.
**Finished Size** - shrug measures 130cm (52in) from cuff to cuff (adjustable), 54cm (21in) across back from armhole to armhole, and 30cm (12in) deep at centre back. It fits snuggly, like a set-in sleeve sweater and will fit up to a 42in bust.
The length of the sleeves can be adjusted. You could add a ribbed collar around the opening if you want the back longer.