Hmmm ... moving knit and purl stitches back and forth would be _very_ slow (for me, anyway). What I'd do is hand-knit the cuff and then put it on the machine to crank out the rest of the sock. My pile of not-yet-UFOs includes a plan to hand-knit a lace cuff in white and then attach it to the sock machine and crank out a colorful sock "underneath" it.
Kind of like the "peekaboo" heartstrings sock pattern.
(posted by me this day on sockknittingmachinefriends)
There is an instruction book for lace knitting on the sock machine, that involves just knit stitches, no ribbing, and moving stitches around on the needles to get the "YO" effects similar to hand-knitted lace. And the old Autoknitter and Creelman manuals contain instructions for fancy stitchwork that you can incorporate into sock legs.
