I've been wanting to make a bearded hat for a while...
I was going to follow a pattern but the only thing that I took from it was to make the hair/beard in seed stitch.
Yarn: Lamb's Pride worsted for the hat. Unspun Icelandic for the beard.
I knit the beige hat normally (from brim to crown). I picked up the back loop of the cast-on row to work the hair/beard. Then I knit seed stitch around, cast off some stitches for the face hole, increased back up, joined, cast off some stitches for the mouth hole, cast off the back hairline, decreased to finish the beard. Knit a little mustache to sew on. I just kind of winged the whole thing.
Should keep me warm while I'm shoveling snow this winter!