Start by cutting strips of yarn approximately 11-12 inches in length. You will need about 30 pieces per hat. Cut the toilet paper roll into 1 inch pieces. its okay if it bends while you are cutting it, you will be able to bend it back into a circle pretty easily.

Next you fold a piece of yarn in half and tuck the loop end through the toilet paper ring.

Fold the legs of the yarn around the outside of the ring and under the loop.

Pull tight creating a knot.

Continue around the ring until you have the entire thing covered. You will want to tuck the knot slightly in from the top to create a hat like appearance.

Using another piece of yarn tie the top of the yarn knots together with a double knot.

Cut the tops about a centimeter above the knot to create a puff ball.

You can tie the ends of the hanging string to create an ornament, or you can pin it up from there.