So remember how I was talking about giving the shrunken hat away? Well, today the very baby cousin I was thinking of giving the hat to called and asked if I would teach her to knit--because she wants that very sort of hat! It's some kind of knitted fate. Particularly since she doesn't know I have the very sort of hat she wants: she just knows I knit.
Naturally I'll teach her to knit. And she can totally have the hat. Hopefully we won't have to shrink it more to get it to fit her.
Gotta love it when a so-called ruined item is just what someone else was wanting.