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Using 4 mm needles and double knit wool, cast on 30 stitches
Beg Purl row, SS 4 rows.
P2tog, purl to end.
Purl to last 2 st, P2tog.
P2tog, purl to end.
Knit next 3 rows.
(P1, P2tog) repeat to end.
(K1, K2tog) repeat to end.
(P2tog) repeat to end.
B&T tightly.
Sew up the row ends to make the main hat.

Wind wool 5 times around a 4 cm piece of thick card, leaving a long end.
Slide loops off card.
Use the end to wind around the loops about 0.5 cm from one end. 
Thread the wool end into a needle and sew a couple of times through the binding to secure.  
Loop this end through the top of the tassel and sew to the hat, leaving a single width of wool between the hat and the tassel.