Yarn: 1 skein of Wildfoote Vanilla [MC], 1 skein of Wildfoote Blue Boy [CC]
Needles: US 2 circular needles, 16 inch and set of 5 US 2 double pointed needles
Notions: stitch marker, tapestry needle
The pattern is written to fit a medium-sized head (about 21-22 inch circumference). You should be able to adjust the size by adding or subtracting a pattern repeat and proportionally reducing or increasing the cast-on.
36 sts / 32 rows = 4 inches in stockinette stitch
I made this a bit loose because I intend to sew in a fleece liner. If you do not want to line the hat, knit in a smaller needle size.
For lack of a legend, read the charts thus: shaded squares are CC, white squares are MC, S = slip stitch purlwise with the yarn in back, / = knit 2 together.
Using circular needles, CO 160 st. Place marker, join to work in the round being careful not to twist. Knit one round.
Rib round 1: Attach CC; k1MC, k1CC, *k1MC, p1MC, k1MC, k1CC, rep from *, end k1MC, p1MC.
Rib round 2: k1MC, p1CC, *k1MC, p1MC, k1MC, p1CC, rep from *, end k1MC, p1MC.
Repeat round 2 eight more times or until desired length of ribbing.
Increase round: With MC, *k4, m1. Repeat from * to end of round. 200 st.
Knit one round MC.
Knit one round CC.
Knit two rounds MC.
Follow chart one. Eliminate or repeat diamond pattern (red bracketed section) for smaller or larger sizes.
Slip Stitch decrease round one (round 1 of chart two): With MC only, *sl1wyib (this will be in CC), k16, k2tog, sl1wyib (this will also be in CC). Repeat from * to end of round.
Resuming stranded colorwork, continue following chart two until there are 10 st remaining. K2tog five times so that there are 5 stitches left, break yarn and thread it through remaining stitches. Pull tight, weave in ends.
Weave in all ends and block hat thoroughly. Sew in fleece liner.