Sand Dunes Hat Pattern:

Yarn:
1 skein Hope Spinnery Wind-Spun Yarn, in Roughy
1 skein Alpaca with a Twist Baby Alpaca, or other dk-weight yarn you have hanging around.

Gauge: 5 stitches per inch in cable pattern.

Needles: Size 7 and size 5 16-inch circulars

Cable Pattern:
row 1: *cable 4 front, k4* around
row 2, 3, 4: Knit
row 5: *k4, cable 4 back* around
row 6, 7, 8: Knit

Need help cabling? These look like good cabling instructions

Cast on 88 stitches with the lining yarn and the smaller needles, using long-tail cast-on. Join to knit in the round. Knit in stockinette for about 3 inches, or desired height.

Switch to main yarn and larger needles. Knit one round. Purl one round (this is the turning row). Knit 4 rounds. Begin cable pattern. Repeat cable pattern until the height of the hat from the turning row matches the height of the lining. Try to avoid ending on row 4 or 8 of the cable pattern (because then you'd have to knit in the liner while doing a cable cross).

Weave in all your ends so far. Once the lining is knit in, there will be no getting at those ends!

Join the lining to hat body: Using the size 5 needle (or an even smaller one if you have it on hand), pick up the loops from the cast-on row. You should end up with about 88 stitches on the needle. Fold the hat at the purl turning row and line up the two circular needles. This is a good opportunity to see if the heights match. Knit a row or take out a row until they do. Then, holding the two needles together and still working with the main yarn, for the next round knit together one stitch from each needle. If you are off by a stitch at the end, no big deal. The lining is in!

Keep knitting in pattern to 6.5 inches or desired height, ending on an odd row.

While working the decreases, you have two options - either abandon the cable pattern and work the top of the hat in stockinette, or work the decreases into the cable pattern. You'll probably end up at a different point in the cable pattern than I did, so use your knitting brain to keep the cable pattern going. For example, is you are decreasing on round 4 of the cable pattern, do the decreases as normal. Then when you come to row 5, do a 3-stitch cable cross instead 4. Barely noticeable. You can also move around the point in the round where you do the decreases, just make sure to do one decrease per 8-stitch original cable repeat. Try to do 2 cable crosses after starting the decreases.

Decreases:
round 1: *k6,k2tog*
round 2 and all even rows: Knit
round 3: *k5,k2tog*
round 5: *k4,k2tog*
round 7: *k3,k2tog*
round 9: *k2,k2tog*
round 11: *k1, k2tog*
round 13 and 14: k2tog around

Break yarn and thread it through remaining stitches.