Yarn- worsted weight,
Needles- size 8 or size to make hat of desired size.
Cast on 96 stitches using cabled cast on (or very loose long-tailed cast on) on circular needles or double pointed needles. Join, being careful not to twist.
Ribbing: [K1 tbl, P1] repeat until ribbing measures 1 1/2 inches.
Set up round: [K4, P8] repeat until end of round.
C4F- Cable Four Front: put next two stitches on a cable needle and hold to front of work, knit two stitches off left needle, knit the two stitches off the cable needle.
C2L- Cross Two Left: put the next two stitches on a cable needle and hold to front of work, purl one stitch off left needle, knit two stitches off cable needle.
C2R- Cross Two Right: put the next stitch on a cable needle and hold to back of work, knit next two stitches off left needle, purl one stitch off cable needle.
Top Loop- *Slip next two stitches to right needle, pass first slipped stitch over second slipped stitch and off needle, pass remaining slipped stitch on right needle back to left needle. Slip second stitch on left needle over the first stitch and off left needle. Repeat from *. The two sides of the cable loop will now meet. Pick up and purl two stitches from the back of the cable. Then purl one stitch. You will now have a closed cable loop with three purl stitches crossing the top. (Note that on the chart, the first two stitches that disappear have been shifted over as the third stitch winds up in the cable twist above the heart.)
T2F- Twist Two Front: put the next stitch on a cable needle and hold to front of work, knit next stitch through back on left needle, knit stitch off cable needle.
C2-4TW – Cable Two-Four Twist: Slip two stitches on a cable needle and hold to front of work, knit 2. Slip left stitch on the cable needle back onto the left needle, and knit it. Slip the remaining stitch from the cable needle onto the left needle and knit it.
Rnd 1: [C4F, P8] repeat  until end of round.
Rnd 2: [K4, P8]
Rnd 3: [K4,P7, C2R,C2L, P7]
Rnd 4: [K4, P7, K2, P2, K2, P7]
Rnd 5: [K4, P6, C2R, P2, C2L, P6]
Rnd 6: [K4, P6, K2, P4, K2, P6]
Rnd 7: [C4F, P5, C2R, P4, C2L, P5 ]
Rnd 8: [K4, P5, K2, P6, K2, P5]
Rnd 9: [K4, P4, C2R, P6, C2L, P4]
Rnd 10: [K4, P4, K2, P8, K2, P4]
Rnd 11: [K4, P3, C2R, P2, C4F, P2, C2L, P3]
Rnd 12: [K4, P3, K2, P3, K4, P3, K2, P3]
Rnd 13: [C4F, P3, K2, P2, C2R, C2L, P2, K2, P3]
Rnd 14: [K4, P3, C2L, P1, K2, P2, K2, P1, C2R, P3]
Rnd 15: [K4, P4, Top Loop, P2, Top Loop, P4]
Note, you will lose 2 stitches for each top loop in Round 15; 4 per pattern repetition, 16 total. The pattern will continue on 80 stitches total.
Rnd 16: [K4, P16]
Rnd 17: [K4, P7, T2F, P7]
Rnd 18: [K4, P7, K2, P7]
Rnd 19: [C4F, P6, C2-4TW, P6]
Rnd 20: [K4, P6]
Rnd 21-24: Same as 20
Rnd 25: [C4F, P6]
Repeat last Rounds 20-25 until hat measures 6 1/2 inches or desired length.
* The K4 is the cable, so substitute a cable twist (C4F) for the K4 every sixth round as it occurs in pattern. When you reach row 11 of the decrease rounds, stop cabling.
Rnd 1: [K4*, P2 tog, P4]
Rnd 2: [K4, P5]
Rnd 3: [K4, P2 tog, P3]
Rnd 4: [K4, P4]
Rnd 5: [K4, P2 tog, P2]
Rnd 6: [K4, P3]
Rnd 7: [K4, P2 tog, P1]
Rnd 8: [K4, P2]
Rnd 9: [K4, P2 tog]
Rnd 10: [K4, P1]
Rnd 11: [K3, K2 tog]
Rnd 12: Knit whole round
Rnd 13: [K2, K2 tog]
Rnd 14: [Knit whole round]
Rnd 15: [K2 tog]
Twelve stitches remain. Put six on each needle and graft closed.
Alternately, you can break the yarn, draw it through the loops, pull it tight, and run it through the loops a second time (for security). Weave all ends.
*Note: Thanks enormously to Kali for test knitting this. Any remaining errors or omissions are entirely my fault. If you discover any other errata or have any questions, just let me know. Thank you! (edited 9/13/2006)