I love knitting for babies because the projects work up so quickly. Here’s a pattern for a Fluffy Baby Hat. I used Sirdar Snowflake. I can knit about 3 hats out of one skein. Another yarn I’d like to try is Cotton Kisses by Plymouth Yarns.
Knitting for babies is so fun because you can finish projects so quickly and use up single balls of yarn. Give this hat a try! I hope you enjoy it.
Nancyknit's Blog 
Thank you for this pattern! I just LOVE this yarn! The reason I found this pattern is because I was looking at your pattern for the Diamondweave Hat. I make hats and other things for babies at the NlCU. Both hats will probably be seen there before too long. Thanks again! Carol
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