Here's the pattern for a three year old hat. Enjoy!
I used leftover worsted-weight pink, yellow and red yarn.
You'll need size 8 circular (16") and double pointed needles.
Cast on 80 stitches with the yellow yarn.
Work 2x2 rib for 3 inches.
Change to pink yarn work *Knit 3, Knit one into front and back* for entire round, ending with 100 stitches.Work until piece measures 5 inches from cast on edge.
Then you start the decreases.
*Knit 8, Knit 2 together* for entire round (90)- Knit next round
*Knit 7, knit 2 together* for a round (80) - Knit next round
*Knit 6, knit 2 together* for a round (70) - Knit next round
*Knit 5, knit 2 together* to end (60) - Knit next round
*Knit 4, Knit 2 together* (50) - knit next round
Switch to double pointed needles.
*Knit 3, knit 2 together* for one round (40)- Knit next round
*Knit 2, knit 2 together* (30) - Knit next round
*Knit 1, Knit 2 together* (20)
*Knit 2 together* to end of round (10)
Break yarn, draw yarn through remaining stiches and secure inside hat. Make a red pompom and attach to top of hat. Ding! The cupcake hat is done!