in case anyone is still confused on the head portion, i thought i would try to make it clearer.
the pattern calls for purl, slip across on an even number of stitches.
so, after you do one row, on the next row you are purling the last rows slips, then on the next row, you are purling the previous rows slips, and so on. this causes a pocket, which make it a front and back.
that may not be any clearer, if you still don't get it, just trust the pattern. it really works out, if you don't forget and purl the wrong stitches.
as far as making kitty ears, i would knit the head as written, then only cast on 9 stitches and subtract 8 stitches from all the instructions as given, so you should have short pointy ears instead of long pointy ears. if that doesn't work, pm me, and i will try it myslef so i can tell you how to make it work.