With A and smaller needles, cast on 36 (40, 44, 48) sts. Divide sts onto 4 needles, placing 9 (10, 11, 12) sts on each needle. 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 and being careful not to twist sts.
Work in St st (k every rnd) until piece measures about 2 (2, 3, 3) in. (5 (5, 7.5, 7.5 cm) from beg.
Change to larger needles.
Continue in St st until piece measures about 7 1/2 (8 1/2, 11 1/2, 12 1/2) in. (19 (21.5, 29, 32 cm) from beg.
Shape Crown (top of Hat)
Decrease Rnd: K2tog around - 18 (20, 22, 24) sts.
Cut yarn, leaving a long yarn tail. Thread yarn tail through remaining sts and pull to gather. Knot securely.
With B colors as desired, embroider Hat as desired. In our sample, we embroidered circles in stem stitch and long 'stems' in stem stitch. We embroidered straight stitch spokes inside some of the circles and worked a French knot in the center. We embroidered lazy daisy leaves on the stems. Braid 3 strands of B yarn to make a 16 in. (40.5 cm) braid, then thread the braid through the top of the Hat. If desired, tie a tassel to each end of the braid.
Wrap B color as desired around a 4 in. (10 cm) piece of cardboard. Cut 2 lengths of yarn each about 18 in. (45.5 cm) long. Fold 1 length in half and draw under strands at top edge of cardboard. Pull tightly and knot around strands. Cut yarn loops at lower edge of cardboard. Use second 18 in. (45.5 cm) length to wrap strands about 1/2 in. (1.5 cm) below top knot. Knot ends of wrap securely, then thread ends into blunt needle and weave into center of tassel. Use remaining ends from top knot to tie or sew tassel to braid. Trim tassel ends evenly.
Weave in ends.