To give credit where it's due, I had this idea after seeing a snowman's head knitted around a Terry's Orange a few weeks ago. When I went looking for it again my Google-fu failed me, I was all set to write my own pattern when I realised that a Santa hat is more re-usable as a decoration than a hollow knitted snowman's head.
I made these little Santa hats that sit snugly on a Terry's Chocolate Orange to give to people who fall in the awkward realm or present getting where I should give them something, but nothing too formal or personal. This is informal with a personal touch, and they can hang the hat up after the chocolate is gone :)
You will need:
Red DK yarn
White DK yarn
2.75mm circular or double-pointed needles
One Terry’s Chocolate Orange
The pattern can be found here.