It can be made with either 2 strands of any medium or worsted weight yarn, like this red and white one. I used 100% wool in Briggs and Little for this one so that it will be nice and warm.
Or you can use the Homespun Yarn from Lion Brand for a really soft hat. They have the nicest selection of colours too.
I really like how this hat frames your face and you can actually wear your bangs out, instead of tucking them in for minimal "hat head". I also added some matching ribbons in the braids for a real personal touch.