Cast on 90 sts. Divide stitches evenly onto three dp knitting needles. Being sure that sts are not twisted, begin knitting in the round. Knit until hat is 6 1/2" from beginning.
Decrease rows:
Row 1 - K8, K2tog around.
Row 2 and even numbered rows 4 and 6 - K
Row 3 - K7, K2tog around.
Row 5 - K6, K2tog around.
Row 7 - K5, K2tog around.
Row 8 - K4, K2tog around.
Row 9 - K3, K2tog around.
Row 10 - K2, K2tog around.
Row 11 - K1, K2tog around.
Row 12 - K2tog around.
Thread yarn thru remaining sts and pull up tight. Finish off.
Follow the pattern for Nellie's Crochet Butterflies to make the butterflies to attach.

Note: This cap pattern was awarded a 1st Runner-Up prize
in the Knitting for Noggins hat design contest
at the Arkansas Childrens' Hospital in 2006.