Using 4mm needles
Cast on 28 in blue.
Knit 2 rows
Beg P row, SS 4 rows
Continue in SS but K2tog or P2tog at the start of every row until 2 stitches remain.
Pass second stitch over the first.
B & T tightly
Sew row ends together and turn the hat to the right side. Sew a bell to the top of the hat and then run a length of wool down the side of the hat. Pull this up to create the typical Noddy Hat shape before fastening off.