Size: 0-3 months
Yarn: Loops & Threads "Impeccable", 26gr total, in brown and white (yarn gauge: 18st/24row on 5mm needles)
Gauge: I didn't measure it, but previously I got 18st and 26 rows per 4" at T6 on the LK150; I haven't handknit with the yarn, so I can't recommend a needle size, but start with 5mm/US8
Finished Measurement: I didn't measure this but based on previous gauge, 14"
Cast on 66 stitches in dark brown (64 stitches for handknitting). Work in ribbing (K1, P1) for 3 rows (work in the round for handknitting, or follow the MK instructions to knit it flat).
For machine knitting, start with ribbing, or do an open cast on and handknit the ribbing in the round after the hat is sewn up. This gives you something to do in the evening, and I think it looks a little nicer than seaming the ribbing.
Change to white, and knit stockinette stitch for two rounds.
Change to brown, and knit (stockinette stitch) 20 rounds.
Decreases will be done in handknitting by slipping two sts at the same time, as if to knit two together. Knit the next stitch, then pass the two slipped stitches over. On the machine, it will be done by keeping a "central" stitch and moving the stitch on either side on to the latch with it.
Handknitting (in the round): Knit 6 sts, dec (as above), knit 13 sts, dec, knit 13 sts, dec, knit 13 sts, dec, knit 7. Knit 1 round. Switch to white for two rounds.
Machine knitting: Move L21 and 19 onto L20; L10 and L8 onto L9, R7 and R9 onto R8 and R22 and R24 onto R23. Move the remaining stitches inwards, towards the middle, to fill the gaps. Knit two rows, switch to white and knit two rows.
Switch back to brown for the remainder of the hat.
Do another decrease row, lining up the left slipped stitch with the prominent stitch of the previous decrease (for hand knitting); machine knitting, line up the prominent stitch and move the stitch on either side onto that needle.
HK: knit 3 rows
MK: knit 4 rows
Repeat the decreases again, but HK: knit two rows, MK: knit 3 rows, and repeat this dec and 2(3) rows.
Not sure how many stitches are left now :) You have dec. 8 sts on 5 rows....40sts are gone, leaving 24/26 sts. If you're HK in the round, do another dec row lining them up, and one round plain, then line up some K2tog. This leaves about 8sts to draw the yarn through and tighten. You might want another plain round after the last dec. round. If you're MK, you won't be able to do the double decreases on the edges....so use your judgement to decrease the last few rows. My notes are not detailed enough to replicate exactly what I did, LOL.
Sew up the seam, if needed, and add ribbing. For the white lacing, take a long strand, and do two vertical lines, then some horizontal lines over it (the end two lines I went over one strand and under one strand).
If you knit this, by hand or machine, let me know; and please take better notes than I did with the decreases :)
Edit: I did get a response from a reader who made this! Her version is at https://www.box.com/s/3vi6egmofrnmi2z1foqj It looks very well written and I really appreciate the link. The third page is her "shortform" version of the pattern.