Knitted Woolen hat!    One of my cousins visited Tibet (where its COLD) and brought this back as a souvenir - but its too small for adults.  Its appropriate for smaller heads, say a 12-year old.  Overall size is about 12x8 inches sitting flat on the table.

As you can see from the pictures, its very colorful (6 different colors) and has a black lining.  Its most likely wool but it could be Alpaca, I don't know.  This is not store-bought, it was handmade in Tibet and is around 20 years old.   

PRICE INCLUDES SHIPPING COST.