My latest hat pattern due out shortly is knit using Frog Tree Yarns, Alpaca Sport (http://www.frogtreeyarns.com/). The yarn is light in feel and texture yet plenty warm as it's 100% alpaca. Some purl sts are strategically placed in the Fair Isle work to add some depth to the Fair Isle. Adult size is being test knit in the grey tones with black as the highlight color. I had 1 skein of each color and have enough left over yarn to knit up the baby size. Love when I can get 2 projects out of 3 skeins (130 yds each). Looking forward to seeing the adult hat in it's finished state.
Edging is crocheted and a single chain loop is added to the bottom of the earflap. Tassel would look just as cute. Speaking of cute, is she not adorable!