Instructions:
Using 4 mm needles
Cast on 30 in white double knit
Beg K row, SS 3 rows
Change to red
Beg K row, SS 4 rows
Continue in SS, K2tog or P2tog at the start of every row until 5 st remain.
Change to white
P1 row
Inc Knit wise into each stitch
Beg K row, SS 2 rows
(K2tog) repeat to end
P2tog, P, P2 tog
B & T tightly

Making Up:
Sew row ends together and turn the hat to the right side. 
Gather around the base of the bobble and pull up tight to make it a good shape. 
Catch the top of the hat to the back as illustrated.