This'll be my last sock puppet post. It took me long enough, yeah?
I made Ms. Michaelsock's hat by knitting a square and using a running stitch with the same yarn on the outer edge of the square and gathering it. It's similar to what you would do if you were making a fabric yo-yo. I don't know that that makes complete sense. A different way of doing it would be to hot glue the square to itelf while making it rounded and kind of poofy. I actually used a combination of both techniques.
I made the hair by guestimating the correct length. I made an X with two lengths of yarn and then secured the yarn hairs together by alternating and tying threads through the two middles of the X.
I then braided a piece of yarn and hot glued it to the top of the puppet to make her hair more interesting that just a long bunch of hanging yarn.
I started with a rolled out oval shape like this: