Welcome to the Flock
This little sheep cardigan really began with the yarn. I could think of nothing more special to do with Sincere Sheep's naturally dyed superwash (a substitute is shown below) than to make a cardigan to welcome a new little person into the world with. And if you're going to make a little cardigan, you might as well make a hat to match.
Errata: At the bottom of the first column on page 2, it says:
"Decrease row (RS): (k1, k2tog) 33 (36, 37, 40, 43) times. K remaining 1 (1, 2, 2, 0) sts: 67 (73, 76, 82, 86) sts. Work 4 (4, 4, 6, 6) rows."
That last sentence should read: "Work 3 (3, 3, 5, 5) rows."
The quantities below are for the cardigan and hat. If you're making the cardigan only in the first or second size you'll need 2 balls less of the main colour.