Use the following pieces: (2) 28-hole semi-circular pieces, (2) 6-hole pieces, (2) 12-hole pieces.
Connect pieces to form an oval as follows: 28-hole semi circular piece > 12-hole piece > 6-hole piece > 28-hole semi circular piece > 6-hole piece > 12-hole piece.
Insert one large grey peg anywhere along loom set-up to mark beginning of round, skip one hole, then insert a large pink peg into the next hole. Continue placing large pink pegs into every other hole along each 28-hole semi-circular piece, 12-hole piece, and 6-hole piece - 46 pegs placed.
Beginning at contrast color peg, with B, cast onto all pegs.
Rounds 1-4: With B, purl.
Round 5: *Knit 1 peg with B, knit 1 peg with A, repeat from * around.
Round 6: *Knit 1 peg with A, knit 1 peg with B, repeat from * around.
Repeat Rounds 5 and 6 until you have completed 68 rounds.
Bind off in the gathered method. Pull tightly to gather Hat closed. Knot to secure.
Thread yarn end into yarn needle supplied with loom and weave yarn ends into the fabric of the Hat.
Insert 2 small pegs 6 holes apart anywhere along one semi-circular piece. Wrap B 30 times around pegs. Cut B. Cut a 6 in. length of B and tie around wrapped strands between pegs. Remove pegs and clip yarn. Shake or fluff pom-pom and trim ends evenly. Use the ends of the knotted strand to attach pom-pom to top of Hat.