Have you seen the latest issue of MagKnits (June 2007)? This little hat is so cute. And with my hat obsession I may just have to knit it up! Check out this issue of MagKnits here.
ETA (2009-NOV-10): Unfortunately MagKnits is no more. However, if you are looking for Sarah-Hope's pattern, she has posted it on her blog at http://www.whatifknits.com/. Click HERE for the pattern. Hip-hip-hooray!