Instructions:
Blue Jellyfish are common in Australia (known simply as Blue Bottles there)
Note: Marie-M knitted this hat with finer wool on 4mm needles

HEAD
Cast on 28sts
Row 1: Knit
Row 2: Knit
Rows 3-12: Stocking stitch
Row 13: K2tog to end (14sts)
Row 14: P2tog to end (7sts) 
B&T

TENTACLES
Crochet a single chain 2.5″ long. Leave a 1″ tail at the beginning of it and a 5″ tail at the end. Make 6 of these.

Making Up:
Tentacles: Thread a 5″ tail onto a tapestry needle and pass it, centre front, from the inside to the outside then inside again 2 rows above the cast-on edge of the head.
Pull the tail through to its end and knot it just before the crocheted section -a single knot is sufficient. You now have two tentacles in place, a crocheted one and a thin one.
Knot in the remaining 5 pieces. Result – 12 tentacles. You can space these as required, adding more or less, depending on your personal preference.
Trim ends as you fancy.
Eyes: Black wool – Marie-M tied 4 knots on top of each other.
Mouth: Black wool – shape as illustrated.
Finally, sew up the back seam of the head.