I made some of these adorable little hats before Ada was born and now I have a baby to show them off on! These hats are super simple to make and look great! I found the tutorial and template for them here: http://www.prudentbaby.com/2011/02/top-knot-baby-hat-tutorial.html
To make these hats I picked up some kid's t-shirts at garage sales over the summer for $0.25 each. Super cheap and easy way to get jersey fabric. Especially because the fabric stores near me only carry ugly or plain jersey fabric.