I had some Fleece Artist "Scotian Silk" left over from Margot's Rainbow Sweater; it is irresistably soft and colourful, and was the perfect yarn for this: The Aviatrix Baby Hat.
I'm kind of knitting them obsessively now; the first was green in newborn size. This second one is in the size 2-4, and fits both my girls perfectly. It looks particularly stunning with ribbon-strapped ballet dresses.
The earflap shaping is simple, clever, and beautiful.
It knits up in about two hours (that is, if you have two hours uninterrupted knitting time).
Now I'm scrounging for newborns to make these for, because really? Every newborn should have an aviator-style knitted hat, right?