Basicly, you take the largest round loom (the yellow for me) and use crochet cast on. Then knit a row and then purl a row. The knit until the cowl part is as long as you want. (I did 7 inches) Then switch over to flat panel knitting on every peg for 10-12 inches. (I did 10) and do a flat panel bind off. Then seem the top together using this method http://anonyknits.blogspot.com/2006/10/seaming-better-than-you-remembered.html. For the bear ears, I used the blue loom and used 14 pegs and did 6 rows and did similar to this technique https://www.youtube.com/watch?v=IgwZl5F8q9k
and then sewed them on. It will fit from a toddler to adult. LOL. I've had it on my 4, 6, and 8 year old (the 4 year old is about the size of a 18 month old) and then my brilliant hubby decided he was going to wear it too.