I used 1.3 ounces of scrap yarn - 8 or 9 colors

The pattern starts out with a basic top-down beanie pattern - round one is 10 stitches in a magic ring.
Round 2 has an increase in each stitch
Round 3 has one stitch between increases
Round 4 has two stitches between increases
etc.
You could make the hat larger by doing more increase rows before Round 6.