This might be the cleverest pattern ever for a knit hat. It's a simple ribbed watch cap, but the knit rows are cabled and the purl rows contain a simple lace pattern.
The pattern is available as a free download on Ravelry and its called Hermione loves Ron because it was inspired by the hat Hermione wore in the Half Blood Prince movie in the Harry Potter series.
The yarn I'm using is Classic Elite's Princess, a blend of 40% Wool, 28% Rayon, 15% Nylon, 10% Cashmere and 7% Angora. I was intrigued by that blend when I saw the yarn on sale at my LYS. It has been really nice to knit with, although it is not as soft as I would have expected with the Cashmere and Angora content. I'll be interested to see how it feels after it washes up.
I've completed three of the four and one-half repeats the pattern calls for before going to decreases. Although this is meant for my oldest child, it looks like he is going to have to fight off his younger sister to get it, and really, it is a bit more of a "girl pattern" than I anticipated when I began it. I'm starting to think about a more teenage boy friendly version that omits the lace pattern on the purl portion of the rib.