This is loom knit on the green Knifty Knitter and you use a Size G crochet hook for the eyes.

For those who might want to convert to regular knitting:
I dug out the hat and measured the gauge. In stockinette I am getting 2 stitches and 3 rows per inch. The hat comes off the loom as a tube (about 9 inches long) and you just gather the top stitches together. On needles you could add shaping to the top to make the gather less noticeable.