This is one of my favorite patterns. Ripley is quick to knit in the called-for bulky weight yarn for an adult, and I've been able to adapt it to smaller heads in worsted for my girls*. Ysolda is a talented designer, and I always appreciate her new take on a technique (you begin with the lace edging for this one and then elegantly pick up the stitches and knit the hat). Ripley is 3.75GBP (a little over $6 at this time), but I recommend springing for the entire Whimsical Little Knits 2 ebook for 9GBP, which will give you a number of other patterns to choose from for gifts (hats, mitts, toys, etc.)
*I'll get a picture of the three of us this weekend for you - one of the little joys of having girls.