New born hats are a fun and useful gift to make for a new baby. They are easy, quick, and can be made with any worsted weight scrap yarn you have on hand because they really don't take much yarn. I personally think knit hats are great for babies because they are a more stretchy than those cotton hats they sell in the store. Just make sure whatever yarn you use is soft and washable.
Here's the pattern I use for making this newborn hat
Things you'll need:
Size 5 Needles
Worsted Weight Acrylic or washable wool. I usually use Lion's brand baby's first yarn because it is very soft and comes in cute colors, though this hat was a soft washable wool I had in my scrap bin
Pattern:
Cast on 54 stitches
Knit 1, Purl 1 across the first row, ending on a purl
Knit 1, Purl 1 across the second row, ending on a purl
Continue the k1 p1 ribbing pattern until your work is 1" (about 6 rows)
Now switch to stockinette stitch. Knit 1 row, purl 1 row for 3". End with a purl row. Your work will now be 4" long
Now you begin decreasing.
Knit 2 together across the row, (27 stitches)
Purl Across
Knit 2 together across the row, ending with k1 (14) stitches
Purl Across
Knit 2 together across the row (7 stitches)
Purl Across
Knit 2 together across the row (4 stitches)
Cut the yarn, leaving a long tail for sewing the seam. Thread the yarn with a large needle. Pull the needle through the remaining stitches and then remove them from the knitting needle. Pull the stitches tight. Sew the seam down one side of the hat and then work your ends in at the bottom rim of the hat.
Happy knitting!