With 2 strands of yarn held together, cast on 21 stitches. Beginning with a purl row, work in Stockinette stitch (knit on right side, purl on wrong side) until piece measures about 7 in. (18 cm) from beginning, end with a purl row.
Next (Decrease) Row: *Knit 1, knit 2 stitches together (insert your needle into the next 2 stitches, then finish the knit stitch to turn 2 stitches into 1); repeat from * to end of row - 14 stitches remaining.
Cut yarn, leaving a long yarn tail. Thread yarn tail through stitches of last row and pull to gather. Knot securely. Use remainder of tail to sew side edges together to make Hat.
Weave in ends.