After many errored times using this tutorial:
http://craftgrrl.livejournal.com/11048797.htmlI came up with my own way- the lazy way.
Instead of cutting out all the pieces individual- I cut out just one piece!
I figured it out by looking at a knit beanie/hat I already had and realized that it was one piece- not three, four or six pieces!
Taking an old knit sweater, I took the measurement from another beanie and measured along the bottom of the sweater (using the ribbing that's already there- so we don't have to cut it off and reattach later). I then drew this:

I sewed up the sides first, making it into a tube- then sewed the other ends together finishing it off. (I'm not really sure how to explain this- but once you have it sewn into a tube you can pin and figure out which sides go where)
So in the end I got this:


I probably could have made it a little shorter- but I like having it a bit longer.

I also made a little bow for it and sewed it on.