This is the cap from the "Cables and Textures Set" in the Leisure Arts publication, "Beautiful Baby," published in 2002.
I made the 6-12 month size using Bernat's Cotton Tots yarn (which, once the accompanying outfit for this recipient is finished, I hope never to use again), with size US5 & US7 needles. It was knit flat (and written that way) from the brim up and the ear flaps were added later. Rather than knit the 5-stitch ties that the pattern called for (a bit much for under a wee one's chin, don't you think?), I continued decreasing the stitches on the ear flaps until I had a single stitch, and single-crocheted a foot-long chain.