I used super bulky yarn and 7mm needles and CO 78 sts. But, I highly recommend you use smaller yarn and needles (provided 4 different measurements so you can cast on more if you need to). You can create sizes that suit you. Simply knit with smaller needles & yarn to make the hat smaller.

I am in the process of making step-by-step video tutorials. Will post link here once they are done.

Video Tutorials: How to Knit a Panda Hat (Part 1: The Hat)

Video Tutorials: How to Knit a Panda Hat (Part 2: The Nose)

Video Tutorials: How to Knit a Panda Hat (Part 3: The Eyes)

Video Tutorials: How to Knit a Panda Hat (Part 4: The Ears)

Updates:*
26/10/12 — YESS!! Part 1 is finished, 3 more parts to go :O! (Subscribe to the newsletter if you want to be the first to know about the update ;))
4/11/12 — Part 2 uploaded.
10/11/12 — Part 3 uploaded.
12/11/12 — Part 4 uploaded. All completed! :)

Hope you like the hat & Happy Knitting! ♥