Note: For Scarf, work back and forth in rows on circular needle as if working on straight needles.
Cast on 39 sts.
Work in pattern st for Scarf until piece measures about 68 in. (173 cm) from beg. Bind off.
With circular needle, cast on 100 sts.
Place marker for beg of rnd. Join by working the first st on left hand needle with the working yarn from the right hand needle, being careful not to twist sts.
Rnd 1: *K2, p2; rep from * around.
Rep Rnd 1 until piece measures about 5 in. (13 cm).
Next Rnd: Work Rnd 1 of pattern st for Hat.
Continue to work Rnds 1 and 2 of pattern st for Hat until piece measures about 9 1/2 in. (24.5 cm) from beg, end with a Rnd 2.
Note: The Crown is the top of the Hat.
Note: When shaping crown, change to double pointed needles when sts have been sufficiently decreased.
Rnd 1: *K6, sl1, k2tog, psso, k1; rep from * to end of rnd.
Rnd 2 and all even numbered rnds: *k1, p1; rep from * to end of rnd.
Rnds 3, 7, 11: Knit.
Rnd 5: *Sl1, k2tog, psso, k5; rep from * to end of rnd.
Rnd 9: K2, sl1, k2tog, psso, *k3, sl1, k2tog, psso; repeat from * to last st, k last st.
Rnd 13: *Sl1, k2tog, psso, k1; rep from * to end of rnd.
Rnd 15: *K2tog; rep from * to end of rnd.
Break yarn, leaving a long tail. Thread tail through remaining sts, pull to gather and knot.
Weave in ends.
Fill sink with hot water and small amount of liquid soap (hand or dish soap or even shampoo will work). Wearing rubber gloves, submerge Hat and Scarf in soapy water. Rub surface of knit fabric, working over entire surface until sts begin to lose their definition. Rinse gently to remove soap. Allow to dry.