Hi, I had thought about the second option but it would have been to difficult and would have required twelve balls of wool simultaneously, bobbins would not have worked.
So I decided to use the seed stitch and add on that way. I cast on using the last stitch of the first row as an anchor and then used the seed stitch pattern.
When I got back to the edge of the blanket I slipped the needle into the last edge stitch and knitted the two stitches together. It is not quite invisible but it looks okay.