Pattern by Amy Sundari Finlay, Winter 2000

Abbreviations used:
CO = Cast On
K = Knit
K1 = Knit 1 stitch
P = Purl
K 2 tog = Knit two stitches together (as if they were one)

Sizes
      Small (12-18 months) to fit head 17 inches circumference
      Medium (3-5 yrs) to fit head 19 inches circumference
      Large (6-8 yrs) to fit head 21 inches circumference

Materials:
Set of US size 6 (4mm) double-pointed needles, or size needed to obtain gauge.
Worsted weight yarn

Gauge:
4 1/2 stiches/inch
6 rows/inch

The Basic Hat:
Instructions are for the smallest size, with larger 2 in parentheses. To alter hat to account for different gauge or size, just
remember to keep the number of initial stiches divisible by 8. (I've used 72; you may use 80, 88, etc)

Cast on 72 (80, 88) sts and join to form a round.
Knit 6 (8, 8) rows of garter stitch (one row knit, one row purl, repeat)
Knit stockinette stitch (all knitting rows) until you reach 2 1/4 (2 1/2, 2 1/2) inches in from bottom edge of hat

Decrease for top:
[K7, K2tog] repeat to end of round. Knit 2 rounds
[K6, K2tog] repeat to end of round. Knit 2 rounds
[K5, K2tog] repeat to end of round. Knit 2 rounds
[K4, K2tog] repeat to end of round
[K3, K2tog] repeat to end of round
[K2, K2tog] repeat to end of round
[K1, K2tog] repeat to end of round

[K2tog] repeat, until only 1 stitch remains
Break yarn, thread through stitch, and fasten off neatly.
Sew in all loose ends.

Optional Touches:
The red "row" was added afterwards with a loose crochet: one crochet stich for each knit stich.
As an obvious alternative, one could knit it in, instead, as the first stocking stitch row. One could also cross-stich the row. Also, I ended up crochetting earflaps on it, for warmth and to keep it on the head!