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Newborn Nursery Hats
We are currently working on baby hats for the newborn nurseries at Centegra Hospitals.  Any baby sized hats from preemie to full term are welcome. Here is a generic pattern for making caps, but any pattern may be used.  To make larger sized hats, use sport, DK, or worsted yarn, and larger needles, from size 5-8 or so.
Preemie Cap
Small amount of quality washable acrylic baby yarn, and size 4 needles
Cast on 72 sts.  Work 2" of K2, P2 ribbing, then work 2 1/2" of stockinette stitch, (or stitch of your choice).
Then begin decreases:
Row 1: K4, k2tog, across row
Rows 2, 4, 6, and 8:  Purl
Row 3: K3, k2tog, across row
Row 5: K2, k2tog, across row
Row 7: k2tog across row
Cut yarn (long enough to sew back seam) and run through stitches on needle, pull them up tight, then sew seam.
If you wish to knit circularly to avoid the seam, do rows 2, 4, 6, and 8 as knit rows (for stockinette stitch).