Started by casting on 6 stitches, knitting i-cord until I could tie it in a knot, then placed three stitches on one needle 1 and three others on needle 2 (I knit in the round with two circular needles). I increase 6 stitches, every other row until the correct size is achieved.
Stop increasing and change pattern to K2, P2 in the round until the hat fits with a folded-back brim. Cast off in pattern (K2, P2).
The big surprise was the yarn. Bunny Hop from Crystal Palace Yarns. This yarn is 50% microacrylic, 42% micronylon, and 8% rabbit angora. It is the *perfect* baby yarn! Soft, soft, and softer!
The yarn label recommends a needle size of 7-8 US, but I much prefered a smaller needle. This hat was knit with a US 4, but I think I would have liked it even more at US 3.