This is an interesting stitch used to make simple motifs. I would say that this is an ‘elongated’ knot which can be used liberally to group together and make dense textures. This stitch gives an embossed look, contributing to the Brazilian embroidery that uses stitches of 3D nature.
Note to use a Milliner’s needle for this stitch. A milliners needle has the same thickness throughout its length, thus making the passing of the wound thread through the needle easy. You will be saving a lot of frustration by using this needle.
Fig 1: Bring the needle out through A and put the needle through B at the desired length.
Fig 2: Now, bring the needle out through An again. Then, wind the thread around the needle as shown. The distance of wound thread should measure the same as the distance between A and B. Too many or too fewer wraps will spoil the stitch.
Fig 3: Then, hold the wrapped thread with your fingers and pull the needle out with the other finger. Keep pulling the needle completely in an upward direction till the wraps lay on the fabric as shown above. Adjust and straighten the wraps if required and put in the needle back through B.
Fig 4: The finished bullion stitch would look like this.