Here's what you'll need to make one too:
A sweater, either felted wool or cashmere...you decide. Some of the stretchy cottons would not work well because they'll just look sloppy. Some knit fabric for embellishments. Add some extra beads if you'd like too.
1) Start by measuring just above the ears all the way around the wee ones head (circumference). Next I measured from the top of her ears to the top of her head (height). I took the circumference number minus 1 1/2" and the height - I cut a strip from my sweater the length of the circumference (circumference - 1 1/2") and the height. You'll have a long band.
2) Next, I cut a strip of my black knit fabric that was roughly 2" wide and twice the length of the circumference. I made folds / pleats with the knit fabric and pinned this to the edge of my sweater band (my sweater fabric was nice enough I was able to leave the edges raw. You may need to serge the edges or hem it). I sewed a stitch right down the center of my pleats to attach this knit pleated band embellishment to the hat.
3) Then, with the gray knit fabric cut about 1/2" wide and roughly 42" long, I started to stitch my rolling roses embellishments. To get this look, I stitched down the center of my knit, right down the center of the strip and pulling and turning to form the rose shapes, etc. You just have to sew a few stitches, stop, turn, and continue turning and moving outward from the center out.
4) With right sides together, stitch down the short side of your sweater band to form a tube and the main portion of the hat. Looking at the open circle my tube created, I matched up that size with a small plate I had from my kitchen (serious. Don't you make patterns with your kitchen ware?). I used that plate as my template and cut a circle from the sweater fabric. With right sides facing, I pinned the tube to the circle and sewed them together. It's a bit tricky because you are constantly pulling and pushing as you are sewing in a circle. But you can do it.