Inspired by the Little Knigt hat I thought I’d try to make a Little Princess hat too.
Thinner yarn so CO 70st and did decreases on top a little different.

21st May:
Since so many people have asked for a pattern for this hat, I will make a PDF later and post it on Ravelry as a free download. This is done with the blessing of the designer of “Little Knight”.

For now, some quick notes:
As the first hat I made was for a preemie baby it is a bit small, so for a newborn baby I would cast on 80 stitches as long as you are using fingering weight yarn.

The pattern is repeated over 10 stitches so it is easy to increase or decrease with 10 stitches depending on thickness of yarn, or if you want to make a larger/smaller hat. The picture shows two pattern repeats.

Cast on with two needles like for the “Little Knight” hat.
(I used 3 mm needles.)

Then use the chart in the last picture here.
When you have finished the chart, continue in stockinette st until you feel the hat is tall enough to start decreasing.

Above each “crown point” of the hat do a K2tog, then knit 1 round. Repeat these two rows twice.

After that, repeat the K2tog over each point at every row until you have 8 st left.

Cut thread and weave through the remaining stitches. Pull tight and sew in ends.

Hope this was helpful for now.
Good luck! :-)

30th Aug.12: A little update on the pattern progress:
The original designer of “Little Knight”, Mostlymom, and I have been working together to make a good pattern. We have decided to make one version each, like “sister patterns” :-) Both patterns are being test knitted at the moment.