About the Monk's Cord you asked about.....I looked it up and it is the same as what is simply called a twisted cord. My husband is the master of this technique and he uses his drill to twist the cord, but here is a site that has instuctions of how to do this by hand. It does make an attractive cord for ties for a baby hat, but after you see it you don't think you want to do one, you could also do a crochet chain or a fine knitted i-cord for the ties.
Link