Yarn: 75 yds of Bernat Baby Jacquard yarn (leftover stash) in the Berries and Creme colorway.
Needle: US size 0 for the ribbing. US size 1 for the rest of the hat.
I cast on 76 stitches and worked in the round, starting with about an inch of k1p1 ribbing. Then I just knit stockinette (in the round, of course, à la Magic Loop) until the hat was about 5.75 inches tall and the yarn had cycled through the colorways and I had 6 rows of the pink again at the top. Then I did a three-needle bindoff from the outside, to keep the hat seam flat and pointy.
The final touch: the little tassels, each formed by wrapping the yarn around a credit card 20 times, then using a long tail of the yarn to wrap around the tassel four or five times. I used the yarn tails (you know, the two ends left dangling from when I’d cinched the top end of the tassel tightly) to secure the tassels to the top corners of the hat. Then it was a matter of weaving in and trimming ends.
(Notes above copied from my blog post on 7/25/2012)