Pixie Hat or Suction Cup?

I've been putting off finishing the larger knit items - Lorelai's blanket, the Amelie dress, my Bartholomew socks... I thought the Pixie Hat would be really cute. I had made Lorelai Christmas themed hats, and the snowman didn't quite work out, and it's been so cold she needs something on her head when we go out. Something girl-ish, as her coat is blue, and with her mop of hair no one notices the pink blanket, so they assume she's a he. I've got the hat from Dan and Virginia's Peru trip, and it's adorable on her! Anyway, I dug around in one of the stash boxes and found this purple-ish yarn, pretty sure it's wool, and thought it would be perfect. I knit it up, and put it on and...

It's way too small. Dan coined it as being rather suction cup like.

Unintentionally then, I've knit the first charity baby hat (out of 30 that are on my 1001 list). It's really cute, and I might add the ties to it as I still have some yarn left. Quick knit, a good break / distraction from the seaming, ball winding and gauge checking that awaits me with the other projects.