You will need:
2 5/16" wooden peg doll
bulky yarn, in red (I used Patons Classic Wool Roving)
9 mm knitting needles
white raw wool (or roving)
a felting needle
a tapestry needle for weaving in ends
CO 10 stitches.
Work 6 rows in stockinette stitch. Break off end, leaving a long tail.
Using a tapestry needle and starting at the opposite end, thread this long tail through the live stitches.
Slip peg doll up into the loop you've created, then tighten the stitches around the doll's neck.
Stitch up seam at the back and weave in loose ends.
Needle felt a small amount of white roving or raw wool into a beard shape. Slipping your felting needle in sideways, lightly attach this beard to the top of the gnome's suit.
CO 10 stitches.
Rows 1-3 Knit in stockinette stitch.
Row 4 (wrong side): *P1, P2tog* Repeat to last stitch; P1.
Row 5: K all stitches
Row 6: *P2tog* Repeat to last stitch; P1.
Rows7-10: Knit remaining 2 stitches as i-cord.
Slip yarn through remaining stitches and weave in loose end.
Take a piece of roving and twist it into trim for the hat. Needle felt this twist around hat brim.
Needle felt a small ball of roving to the top of the hat as a pompom!
Tuck ends of roving inside hat, and sew up back seam.
To attach the hat, I needle felted the sides of the beard to the edge of the hat. I also gave a few jabs of the felting needle to the back of the hat where it meets the top of the coat. You could secure the hat to the peg doll with hot glue if it will be involved in active play!
This little guy was so quick to make, I'll be adding some of his brothers to our annual Advent exchange!