http://www.nakedsheep.com/cupcakehat.html and I didn't have any problems with it. I used Bernat Satin, and I went down to a 4mm needle.....perhaps that is why it came out too small. It fits the recipient's 18 month old sister, but the 3 year old's head is just a bit bigger. I gues I'll be knitting another one!
The bobble things (I think the pattern calls them nubbles) were pretty hard on the hands, especially since there are 40 of them, but the effect is pretty neat. The pompom gave me a lot of trouble, I totally forgot how to make them. Ah well, the kids won't notice.