Source: Martha Stewart Baby, Volume 4 2001
Bear cubs are almost always warm, and have no need for hats. Your infant, though, has less natural insulation to protect him from the chill. A teddy bear toque keeps the heat in and provides a cheerful playmate. Even better, it can be made from a plain knit hat using nothing more than some cotton batting and a few quick stitches with contrasting yarn. Look for a tall hat with a rolled edge, like this one, or unfold the cuff of a ski hat. The end result proves it: Two heads are cuter than one.
Begin with a knit hat that has a little extra height. Put a marshmallow-size ball of batting inside peak of hat, and squeeze bear's neck to shape head. Mark eyes and nose using a fabric pencil.
Remove stuffing; create eyes with knots of contrasting yarn. Sew a yarn "X" for nose. Replace batting.
To shape head, loop a rubber band at neck to hold in place; wrap matching heavy button thread around neck three or four times, just above rubber bank; knot. Repeat twice more to shape ears. Remove rubber bands.