This stitch is very decorative and easy to do. Bonnet stitch is worked from right to left. I will work between two straight parallel lines to show this stitch. 


bonet_stitch_1     bonet_stitch_2
Fig 1: Start by bringing out the needle from point A in the lower stitch line. Then, Take the needle in through B and out through C, both slightly angled from A, as shown.    Fig 2: Now, take the needle from under the the stitch A-B, without plucking the fabric beneath, as shown.
bonet_stitch_3   bonet_stitch_4
Fig 3: Pull out the needle and see a twisted effect happening. Next, put the needle in through A and out through D, a point directly below C. Loop the thread under the needle and pull out the needle.     Fig 4: Begin the next stitch, by taking the needle in through E and out through F. There is a slight gap between C and E. 
bonet_stitch_5   bonet_stitch_6
Fig 5: Observe how the needle goes out of the stitch near D before going in through the fabric at G. Keep on with this procedure.    Fig 6: A finished row looks like this.