Step 1
<b>Hat</b> Cast on 45 stitches. Place a marker and join for working in the round. Round 1: *K1, p1; repeat from * around. Round 2: *P1, k1; repeat from * around. Repeat rounds 1 and 2 for seed stitch until hat measures 3 1/2" (9cm) from the cast-on edge.
Step 2
<b>Crown Decreases</b> Round 1: *K2tog, p1; repeat from * around—30 stitches. Round 2: *P1, k1; repeat from * around. Round 3: *P2tog, k1; repeat from * around—20 stitches. Round 4: *K1, p1; repeat from * around. Round 5: *K2tog, p2tog; repeat from * around—10 stitches. Cut yarn, leaving an 8" (20.5cm) tail. Thread yarn through remaining stitches, pull tight to close opening, and weave in the end.
Step 3

<b>Ears (Make 2)</b> Note: Create m1 increases by picking up the bar between the stitches to be knit and then knitting into the back loop. Starting at the tip of the ear, cast on 5 stitches. Row 1 (RS): K1, *p1, k1; repeat from * to end. Row 2: P1, m1, p1, k1, p1, m1, p1—7 stitches. Row 3: P1, *k1, p1; repeat from * to end. Row 4: K1, m1, k1, [p1, k1] twice, m1, k1—9 stitches. Row 5: K1, *p1, k1; repeat from * to end. Rows 6–9: Continue in seed stitch as established. Bind off in pattern.
Step 4

<b>Finishing</b> With the cast-on tail indicating the center back of hat, position the ears 3 1/2" (9cm) apart at the top of the hat (as pictured) and whipstitch them into place. Weave in the ends. Block, if desired.
Step 5

Excerpted with permission from <a href="http://www.amazon.com/gp/product/0307587088/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0307587088&linkCode=as2&tag=craftfocom-20">"Just Like Me Knits: Matching Patterns for Kids and Their Favorite Dolls"</a> by Brandy Fortune and published by Potter Craft.