In reply to Que Sera Sera:
Yes, exactly the same. Did exactly as you for a year or so with a needle, it eventually went away (well there's still something there but it's not a cyst just a hard bump). Hurt a fair bit when there was loads of pressure on the surrounding tissue, but easily remedied, temporarily. I couldn't work out what the jelly was, just thought it was intracellular fluid full of protein - never thought of synovial fluid. So thanks for the diagnosis!