Everywhere, pretty much. In the car, at restaurants, during the lulls at our bi-weeklyD&D session, in the morning in bed, in the evening in bed, at the computer while I wait for things to load. Once in a while I’ll even knit while walking.
Here are a few of the things currently on the needles, and where I knit them. I just updated the WIP page, if you want project specifics on any of this.
This is to be a ribbed hat for my husband:
It sits next to the computer, being knit whenever I have a spare moment, and occasionally gets tucked into the travelling bag.
Silvanus – trucking merrily along, as you can see:
Knit in bed in the mornings, my early morning dose of yarn therapy to get things started off on the right foot. Also knit in bed in the evenings, if my energy is good enough.
Holiday dishcloths:
These stay in the travelling knitting bag, for knitting in the car, and KIP’ing where appropriate. These have seen action in dental offices, friends basements, chain restaurants, and on the turnpike.
What I haven’t got, and sort of wish I had, is a designated “knitting spot”. A nice comfy chair and hassock, with an end table big enough for tea and a pattern book, and an over the shoulder light source. A place next to it for my knitting basket. Ideally, by a bookshelf where I can stick both of my knitting books for easy reference.
Knit-Write 
I was hoping to see the cloths – the pattern is lovely!