Wee Waves Hat

 Supplies:

Size 7 knitting needles - circular 16" and double points (optional - I use the magic loop method with great success at the top)
Martha Stewart Extra Soft Wool Blend by Lion brand - 1 skein winter sky, 1 skein gray pearl
cable needle (helpful, but not absolutely necessary)

Pattern:
With gray pearl, cast on 80 stitches. Place marker and join. Knit in knit 2, purl 2 rib for 1 1/2 inches.

Row 1: Knit
Row 2: Knit
Row 3: Knit
Row 4: knit
Row 5: Switch to winter sky - knit
Row 6: In winter sky: purl 3, *knit 3, purl 7* Repeat from * to * until 7 stitches remain on row. Knit 3, purl 4.
Row 7: Picking up in gray pearl: knit 3, *slip 3 (these will be the knitted stitches from the row before), knit 7* repeat  from * to * until the last 7 stitches, slip 3, knit 4.
Row 8: Repeat Row 7
Row 9: Repeat Row 7
Row 10: Repeat Row 7
Row 11:  In gray pearl: knit 2, place next stitch on cable needle and hold behind (or drop) and knit first slipped stitch, knit stitch on cable needle, knit 2nd slipped stitch, place next slipped stitch on cable needle and hold in front of work, knit 1, knit stitch on cable needle. Knit until next slipped section and repeat. End result should be a fanning effect of the slipped stitches.

Repeat Rows 1-11 twice more.

Begin decrease:
Dec. 1: Knit 8, K2tog, repeat through end of row
Dec. 2: Knit 7, K2tog, repeat through end of row
Dec. 3: Knit 6, K2tog, repeat through end of row
Dec. 4: Knit 5, K2tog, repeat through end of row
Dec. 5: Knit 4, K2tog, repeat through end of row
Dec. 6: Knit 3, K2tog, repeat through end of row
Dec. 7: Knit 2, K2tog, repeat through end of row
Dec. 8: Knit, K2tog, repeat through end of row
Dec. 9: K2tog 8 times.

Break wool and tightly sew top together.