This is a top down hat with some directional knitting. You start with a three-cornered peaked crown. Then switch direction to knit the tapestry braid that surrounds the head. This is edged with a knit-in i-cord. After joining, pick up the stitches from the i-cord and knit the ribbed head band. The hat is loose fitting and quite elastic. You may want to knit beads or bells into the cabled band.

As for yarn, I would advise against a yarn that displays contrasting colors, but any tonal yarn will be beautiful. This hat also looks well with a cable knit in a contrasting color to the crown and brim.