So I tried making the cat toy and just feel lost.

I've worked on DPNs before so that's not the trouble. I'm having problems understanding the increases.
For Row 3 it says:
Row 3: (K1, inc1) twice, k2(inc1, k1) twice.
Now at this point I start off with six stitches. So do I
knit 1, knit in the back for increase1, do this again, then for the k2 what do I do?
Do I do the (inc1, k1) for the k2 or do I do that after the k2?
Then I'm also confused on Row 7:
Row 7: (K3, m1) twice, k2, (m1,k3) twice
I looked up m1 and it means "make 1". How is this different from "inc1"?
Also for this row do I knit three stitches, then make a new stitch, then knit three more stitches, then make a second new stitch, then knit two, then make a third stitch, then knit 3, then make a fourth stitch then knit 3?
Whew! Thanks in advance, I'm quite perplexed.

And one more thing. My smallest DPNs are only 5mm so I'm toying with the idea of doing it on 3.5mm straight needles and then stitching it up at the end. Would that work?