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Newborn babies need a lot of help keeping as warm as they were in utero. This super-easy little hat knits up fast, uses very little yarn, and is cuter than the ones the hospital provides.
Designer’s Note: a few people have mentioned that their projects turned out too small. This is a tiny hat! It is meant to fit a brand new baby, and most likely will not fit for long. One idea to guarantee fit is to knit a bit further (half an inch or so) before beginning decreases.