Step 1: The clues are a young adult (20-40 years), a lesion around the knee (epiphysis of distal femur or proximal tibia), and histology showing numerous osteoclast-type giant cells among mononuclear cells.
Step 2: This is the classic picture of a giant cell tumour (GCT) of bone. The tumour is composed of uniform oval mononuclear cells with scattered giant cells that may carry 100 or more nuclei. Mitoses are frequent, and necrosis, hemorrhage and reactive bone are common.
Step 3: Osteosarcoma shows malignant osteoid; Ewing's sarcoma shows small round blue cells; chondrosarcoma shows malignant cartilage. The giant-cell-rich histology fits GCT best.
Ref: Robbins Basic Pathology, 9th edn, pg 781.