I began by cutting out the pattern for a cone on poster board. You can find one by searching online or you can simply create your own so that the size is just what you want. I ended up just creating my own so the sizing would be what I wanted. I used my pattern to trace and cut out all of the poster board base I would need, 1 for each hat.
I also used my pattern to cut out the felt . . . I left an extra half inch around the pattern for the felt to be sure it would cover all of the poster board.
Once all the felt was cut out I began to embroider it. I used my embroidery machine to add sesame street faces to the hats but, if you do not have an embroidery machine you can always add your designs by hot gluing felt cut-outs to your hats.
I then assembled all of the poster board pieces into cones. Then hot glue your finished felt onto the cone, stretching to cover the whole cone. At this point you should staple some elastic string to your hat.
Embellish as you would like. I added pom-poms to the top of the hats and then felt fringe along the bottoms! Be creative and have fun!