Here are some pictures of the finished baby hat. I am giving it to my great-niece Lily because it is too big for a newborn. Lily is 18 months old and adorable. I'm going to try the same pattern with 60 stitches cast on to make it smaller. The pattern calls for size 2-3 needles, I used size 6. Oops. Always makes sense to read the directions before starting to knit. :)
I don't like the top of the hat. There's supposed to be a little knot there, but I couldn't figure it out from the directions. So I'm off to Martha's to get instructions on how to make a tassle or pom-pom for the top.
I really enjoyed knitting this pattern. It's a keeper.