Step 1

Materials: Debbie Bliss Cashmerino Aran, 55% extrafine merino wool, 33% acrylic microfiber, 12% cashmere, 1.75 oz (50 g), 98 yds (90 m) 1 skein of each in the following shades: A; 300502, Pea Green B; 300004, Navy Needles & Notions • US 6 (4 mm) circular needles, 16 in. (40 cm) length • US 8 (6 mm) circular needles, 16 in. (40 cm) length • US 8 (6 mm) doublepointed needles (DPNs) • 8 stitch markers • Tapestry needle • Pom-pom maker or cardboard for making pom-pom template
Step 2
With A and US 6 (4 mm) circular needle, cast on 104 sts, join for working in the round taking care not to twist the sts and pm for beg of rnd. Work k1, p1 rib for 1 in. (2.5 cm).
Step 3
Change to US 8 (6 mm) circular needles. Join in B at row 3 and work through all rows of the chart. Using A yarn only, work in St st (knit every round) until piece measures 6 in. (15 cm) from the cast-on edge.
Step 4
Decrease crown Next rnd: [k13, pm] to end. Decrease rnd: [k to 2 sts before marker, k2tog] to end. (8 sts decreased) Next rnd: knit. Rep last 2 rnds another 6 times. (48 sts) Rep Decrease rnd only until 8 sts remain, changing to DPNs when stitches are not comfortably held on circular needles anymore. Break yarn leaving a 6 in. (15 cm) tail and use the tapestry needle to weave the end through the remaining stitches and secure.
Step 5
Finishing Weave in all loose ends. Block hat to finished dimensions. Using A and a pom-pom maker or template cut from card, make a 2 in. (5 cm) pom-pom. Leave a long tail when tying the pom-pom for attaching to the top of the hat. Securely stitch the pom-pom in place.
Step 6

This how-to is excerpted with permission from <a href="http://www.amazon.com/gp/product/1438004249/ref=as_li_tl?ie=UTF8&camp=211189&creative=373489&creativeASIN=1438004249&link_code=as3&tag=craftfocom-20&linkId=TPY6FQ3M4P76Z5JX">"Color Knitting with Confidence: Unlock the Secrets of Fair Isle, Intarsia, and More with 30 Vibrant Colorwork Techniques"</a> by Nguyen Le (Barron's Educational Series).