Materials Needed:
Brown Sheep "Lamb's Pride" worsted yarn (or any worsted weight yarn), 1 skein of Main Color (I used "Ink Blue", and it took just less than 1 4 oz/190 yd. skein)
Small amount of 2 contrasting colors (I used dark red & cream)
1 16" circular needle US size 8, 1 set double point needles US size 8 (or you can knit the whole hat on the dp needles)
1 stitch marker

Gauge: approx. 4.5 sts=1" on US #8 needles.  Hat is stretchy, so you can fudge a bit...

Instructions:
With CC #1, cast on 100 stitches (either cast on all sts on the 16" circular needle, or cast on to dp needle and divide stitches evenly).  Work entire hat in rounds in knit 1, purl 1 ribbing.  Work 2 rounds in CC1, 4 rounds in MC, and 3 rounds in CC3.  Switch to MC, and continue working ribbing in rounds until hat measures 10" from cast on row.

Work top shaping:  Round 1: *work 8 sts in ribbing, k2 tog; rep from *. (You'll need to switch to the dp needles eventually, if you are using a circular needle).
Round 2: *work 7 sts in ribbing, k2 tog; rep from *.
Round 3: *work 6 sts in ribbing, k2 tog; rep from *.
Round 4: *work 5 sts in ribbing, k2 tog; rep from *.
Round 5: *work 4 sts in ribbing, k2 tog; rep from *.
Round 6: *work 3 sts in ribbing, k2 tog; rep from *.
Round 7: *work 2 sts in ribbing, k2 tog; rep from *.
Round 8: *k1, k2 tog; rep from *.
Round 9: *k2 tog; rep from *.
Cut yarn, thread through blunt needle and run through remaining stitches, draw them up tightly and secure on wrong side.  Weave in any ends (you will be turning up the brim of the hat, so take this into account when you weave in the ends!  You'll want to weave them in on the 'right side' of the work, then turn the brim up--hope that makes sense!)

CC= CONTRASTING COLOR
MC= MAIN COLOR
K2 TOG= KNIT TWO STITCHES TOGETHER