That's what I made yesterday using part of the new yarn. Planning to knit matching fingerless mitts and scarf to keep little girl warm from all sides :)
I used Judy's Magic Cast on. Then knitted in stockinette in the round until hat measured almost the length I wanted. Cabled edge is knitted separately and joined with the body of the hat by knitting body stitch together with the last stitch of the cabled edge. I really should have used Kitchener stitch to join back seam of cable edge. I sewed it and result is not as neat as could be. Or maybe it's just my obsession with details.