That's right. Here's the pattern
Yarn: Mainstays crafts True Red
Size US 4 needles (round and dpn)
felt (green, yellow, red, and black)
Cast on 110 on round needles (or dpn if you wish) and purl for 3-4" (110 is a good size if you think you have a bigger head)
Knit for 5-6" (this is supposed to be a shorter hat, but it's a little too short for my liking)
put on dpn (now would be a good time to start using those stitch markers) and use this to decrease
Round 1: *k6, K2tog (*repeat)
Round 2, 4, 6,8,10: Knit
Round 3: *k5, K2tog
Round 5; *k4, k2tog
Round 7: *k3, k2tog
Round 9: *k2, k2tog
Round 11: *k1, k2tog
Round 12: k2tog
Round 13: k2tog
OPTIONAL: Round 14, k2tog
The reason why the last one is optional is because I'm horrible at math and needed another round to get this small enough to bind off. You should have about 6-8 stitches left for a good bind off.
With tapestry needle and extra yarn, sew the purled side up to the knitted side.
Cut black felt into an 1 1/2" rectangle. Cut red, yellow and green circles accordingly.
Remember, the red circle goes at the BOTTOM of the hat. I messed up and didn't notice until I took the picture.