The older sister of one of my friends sent me some scrap Noro, so I tied it all together randomly and am making a striped hat/neckwarmer combo. I am making them exactly the same way (more or less):

I cast on 60 sts, joined in the round
Knit 3 rows 1x1 rib
Knit until desired length
Knit 3 rows rib
Bind off
Thread yarn in and out through ribbing at top (I went over the purl sts, under the knit sts), and cinch tight. Tie tightly and weave in ends, cinching together any gaps.

Took me 1.5 hours to complete.