Cast on 38(46) stitches.
Work in Garter stitch (knit every row) until piece measures about 9 1/2 in. (24 cm) from beginning. Bind off. Cut yarn, leaving a long yarn tail for gathering and sewing.
Thread yarn tail into blunt needle, then in and out of bound-off edge and pull to gather for top of Hat. Knot securely, then use remaining tail to seam sides to make Hat. Weave in ends.
Cast on 16 stitches.
Work in Garter stitch (knit every row) until about 2 yards (2 meters) of yarn remains. Bind off.
Weave in ends.