Photos were taken with the recipient wearing the hat; I'll see if I can get permission to blog one soon.
Pattern: Cupcake Hat by Becky Verveka (non-Ravelers: go here)
Yarn: Bernat Satin Solids, pink, brown, red (labels long gone)
Needles: 4.5 mm/US 7 Addi Turbo 40 cm/16"
Modifications: Instead of the red pom-pom called for in the pattern, I used the cherry from Labpuglecchi's Cupcake Hat pattern (non-Ravelers: go here).
Notes: The pattern describes the size as 1-4 yrs, but I'd increase the number of stitches for 2 yrs and up; my recipient is 12 months today, and I suspect it won't fit for long. (Or maybe she just has a big head?)
Yesterday in the comments (erm, comment), Julia asked about how the icing edges were made. These nubs/bobbles were made on the second round of the icing colour, by casting on four stitches then binding them off. The nubs were placed at every other stitch (so, there are 40 nubs and 40 plain knit stitches in this second round).