Yes Bhargav, As you said you need to come up with a matrix of
probabilities. Probability at each position says the chance of staying
the knight at this position after n moves.
If we consider standard chess board of size 8X8 then we can nail down
the number of cells to 10 due to the symmetry. we would get 10X10
matrix of probabilities and the go foreword.
Now I don't recall the exact process to solve this problem.. But this
is the big hint to go further..
-- SURI