Knotted, and you colour cloth thus (3-3)
I believe the answer is:
tie-dye
'colour cloth thus' is the definition.
I can't tell whether this defines the answer.
'knotted and you' is the wordplay.
'knotted' becomes 'tied' (similar in meaning).
'and' is a charade indicator (letters next to each other).
'you' becomes 'ye' (historical version of 'you').
'tied'+'ye'='TIE-DYE'
Can you help me to learn more?
(Other definitions for tie-dye that I've seen before include "Clothing style" , "Method of colouring garment in which it is knotted" , "method of patterning textiles" , "Colour fabric" , "hippies do this" .)