The Satanic Verses (1988), provoked violent reactions from Muslims in several countries, so did the cartoons.
For different reasons.
The Satanic Verses caused controversy over the titular verses which were seen to question Muhammad's honour. The Danish cartoons depicted Muhammad which, in Islam, is forbidden.
It is a double standard to approve one and condemn the other.
Nobody can be accused of double standards. The Muslims condemn both, I heartily accept both. It should be noted, lest this be where your double standards argument is coming from, that the Danish illustrators are not actually eligible for a knighthood.
If we defend the right to print and publish a book in our country regardless of whether it will offend a certain religious group, then we must also have the right to publish a cartoon, make a film or what ever.
Indeed,
Jyllands-Posten had the right to publish the cartoons and did so. Just as you can no doubt find
The Satanic Verses on the shelves of all good Danish bookshops.
If you disapprove of the cartoons then it seems reasonable to disapprove of The Satanic Verses for the same reason.
As I said, those who disagreed (that would be Muslims) disagreed with both.
Knighthoods are given out like sweeties (we know all about cash for honours in the Labour party) and I see no reason why SR should have received one over and about many other writers, unless there were other reasons.
Cash for honours? Now you're mistaking knighthoods for peerages. As for reasons why Salman Rushdie should have received a knighthood over other writers, let's just think about it for a moment:
Firstly, the award is for "services to literature". That means it isn't just for The Satanic Verses, which seems to be the crux of your argument. He has written many other novels, including one for children, as well as non-fiction in the form of essay, critique, and travelogue. He also has a wide range of awards to his name, be they for a single work or lifetime achievement. And that his second novel, Midnight's Children should win the Booker of Booker's (best of the first 25 years of the Booker Prize) certainly sets in him good stead and proves that his literary contribution is of a higher pedigree. What other reasons could there possibly be for awarding someone who, for over thirty years, has produced a body of outstanding literature that will perhaps see him one day awarded the Nobel Prize in Literature?