Keep in pattern. If the stitch you come to is a K, K it; if it's a P, P it. My reading of the pattern makes me think you are working stockinette here. Is that right?
Cute hat! and worth the effort, I'm sure.
I'm almost to the point of working short rows in double seed stitch. I share your angst. Here's a video you might want to check, German short rows with no wrap. The lady in PJs here posted it and it's what I've been using ever since. You might like it too. http://www.youtube.com/watch?v=P6n561SMZXQ
I went back and reread the pattern, and you are in the ribbing. My bad. Still, if it's a K, K it, if it's a P, P it.