This simple lace hat can be either worn as a beanie or with some slouch. The folded hem or picot hem give it a more polished look.

Yarn: fingering weight approximately 200 yards (50 grams)
Shown in Mint Rain Hand Dyed Yarns Sparkle Sock in Pink Cosmic Dust
438 yards 100 grams (Approximately 160 yards used for Size Small)

Needle: US 3 (3.25mm) 16 inch circular needle and US 3 (3.25mm) dpns

Notions: stitch marker, tapestry needle

Gauge: 7 sts per inch (blocked)/ 10 rows per inch (blocked)

Sizes:
Small: 15-18 inches
Medium: 18-20 inches
Large: 20-22 inches

For a tutorial on Picot Hems please visit: http://www.craftsy.com/blog/2014/03/how-to-knit-a-picot-edge/