A "Real" Crochet Project

Time to do a new years resolution and make a REAL crochet project!  (By REAL I mean not just the border or something... and something that is not a granny square.  I want to try increases!)   I decided to make a baby hat because it is a small and fast project to create... not to mention that my back up baby show gifts have all disappeared in recent months.  I selected the Bev's Newborn Roundie Hat for this project.  I used Lilly Sugar'n'Cream Ombre 02223 and Size G (4.0 mm) crochet hook.

So I'm not sure what it means by make 14 DC's inside ring.  Am I supposed to go all the way around the chains or pick up a loop from the first chains?  I'm going to figure to go all the way in because I couldn't fit 14 trying to pick up from the edge of the frist loop.  I picked up from inside the circle and it was MUCH easier.  The hole in the center was a little big, but I was able to tighten the tail and it brought it closed.  I'm crocheting!!!!

Knitting Round 4, I think that this isn't any where near big enough with 35 sts.  Maybe the hat would fit a DOLL head but not a baby.  I frogged this row and decided to add an increase stitch into every 3rd stitch rather than every second stitch.  (New Round 4 had 48 sts.)  Continue as written.  (Look at me, modifying a crochet pattern!)  

I knit a total of 10 dc rounds, and then did one sc round.  32 g in the hat.  25 g remain.  Completed in an evening!!  The final hat is 5.5" long, 6" wide.  What should I crochet next?

This project would not have been possible without the help from my Encyclopedia of Crochet (seen in some of the above pictures.)