Funny you should mention this...I am making one right now out of sock yarn!
I like to work with a multiple of 10 when I can for simplicity so I CO 100 and did about 1.5 in of k1p1 ribbing and now I'm doing the rest of the knitting. When I decrease I will k8, k2tog around, then k one row, k7, k2tog, etc. This one looks like it might fit a toddler, but I'm not far enough into to tell for sure. A newborn hat would most likely have to be knit on DPNs because they are so small.