Instructions:
Using 4 mm needles and double knit wool
Cast on 28sts in a blue colour, I used a blue yarn with a sparkle woven in
Knit 2 rows
Beginning with a knit row, SS 4 rows
Change to a sky coloured wool and starting with a knit row, work 10 rows in SS
(K2tog) rpt to end (14sts)
(P2tog) rpt to end (7sts)
B & T

Making Up
Sew a dolphin button on to the hat using matching cotton.
Have a look here for the buttons