With circular needle and two strands of yarn held together, CO 54 sts. Pm and join in the round. Knit in the round until piece measures 7” (18 cm). At the beginning of the next rnd, turn work inside out so WS is facing. With straight needles, divide sts so that there are 27 sts on each needle. Hold needles side by side and use the circular as your third needle, then make a three-needle bind off. Flip again so that the right side is now facing out. Squared edges are now your “cat ears.”
FLAPS (make_2) Using straight needles, pick up 9 sts from the brim under the squared edge on top. Work St st for 4 rows. Row 5: K1, k2tog, k3, k2tog, k1–7 sts. Row 6: Purl. Row 7: Knit. Row 8: Purl. Row 9: K1, k2tog, k1, k2tog, k1–5 sts. Row 10: Purl. Row 11: Knit. Row 12: Purl. Row 13: K2tog, k1, k2tog–3 sts. Row 14: Purl. BO. Make a flap for opposite side. Weave in all ends.