In this paper, we propose a novel error diffusion halftoning algorithm for the conversion of cyan, magenta and yellow (CMY) ink amounts to a multi-bit halftone image. We adopt the idea of allowing multiple drops of colorants in order to achieve print results with better saturation, which is implemented by modifying the classic Floyd-Steinberg error diffusion algorithm. For better halftone texture and more efficient use of colorants, we add a dot-off-dot feature to the classic Floyd-Steinberg error diffusion. Blending-in the original input image with its DBS screened multilevel halftone image as a preprocessing step to dot-off-dot error diffusion is proposed as a measure to reduce halftone artifacts. Digitally simulated halftone images will be presented to illustrate the better halftone texture that can be achieved by applying the proposed algorithm.