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Knit in Artyarns Supermerino (machine washable!) on size 7 DPNs.
Follow Lil' Devil Baby Hat for the basic hat pattern. Just pick up stitches (alternating kwise and pwise) along one of the decrease lines (and a bit into the forehead), do a k1 p1 ribbing for two rows, then start binding off some of the stitches on the back (about 10-12) in every pass. Pick up the 11 stitches for the earflap and knit garterstitch as directed; change to k1 p1 ribbing. On the right side, every few rows, increase the purls (or increase k on the WS), until you have k1 p3 ribbing; continue in pattern for 1-2 rows, and bind off in pattern on WS.