Using 2 worsted weight yarns (typical yarn weight) held together as one yarn, wrap the loom one time around. If you haven't e wrapped before, here is a video to get you started.
Push the first row down to the bottom of the pegs and wrap a second row. As you wrap be sure to wrap loosely! Wrapping too tight will make the next step difficult.
Knit! You create knit by using the hook that came with your Knifty Knitter looms to pull the bottom loop up and over the loop above it, then off the peg. Do this with all the pegs until you have only one loop left on each peg.
Wrap again. Knit again. Continue wrapping a row and knitting a row, until you've knitted 30 rows.
Remove the knit from the loom by cutting a one foot tail of the working yarn. Thread the end through a yarn needle and sew through each loop with a yarn needle. In this step you want to be sure that you go the same direction that you've been working, so as not to reverse the direction of the yarn.
When you have the loops off the pegs, pull the yarn tight to cinch the knit together. This is the top of the hat. The bottom of the hat will naturally roll.