Cable knit Hat

I was sent this great pattern...not sure where it came from but its great to knit!

Materials:
One size 16" #7 or #8 round knitting needle
Four size #7 or #8 double pointed knitting needles
One cable needle
Acrylic or cotton yarn (about one ball)

Directions:
Cast on 88 stitches on round needle (or you can knit in the round with the stitches divided between three double pointed needles).Round #1: knit 3, purl 1 for the entire round.Repeat Round #1 until 2" are completed.

Start Pattern:
Row 1: P2, K6, P2, K1 (repeat for entire round).Rows 2 - 4: repeat Row #1 three more times.Row 5: P2, slip next three stitches onto cable needle and hold in back of work, K3, knit stitches from the cable needle, P2, K1 (repeat for entire round).Rows 6-8: Repeat Row #1 three more times.Repeat these 8 rows for pattern until hat measures about 5" from beginning of pattern (7" from beginning of cap)

Shaping:
If you have been knitting with the 16" round needle, then divide stitches onto the double pointed needles. (Place 28 stitches on the first and second needles, place 32 stitches on the third needle.)
Row 1: K2 sts together, K9. Repeat across entire row.Row 2: K2 sts together, K8. Repeat across entire row.Row 3: K2 sts together, K7. Repeat across entire row.Row 4: K2 sts together, K6. Repeat across entire row.Row 5: K2 sts together, K5. Repeat across entire row.Row 6: K2 sts together, K4. Repeat across entire row.Row 7: K2 sts together, K3. Repeat across entire row.Row 8: K2 sts together, K2. Repeat across entire row.Row 9: K2 sts together, K1. Repeat across entire row.Row 10: K2 sts together across entire row.

Finishing:
Cut the yarn, leaving a 10" tail. Thread it through the remaining stitches and draw up tightly, weaving in the end.