The Cotton Bam Boo Baby Hat makes use of a stitch that we refer to as a baby cable. When working a baby cable, no cable needle is necessary instead the sts are crossed while still on the needle.
Knit 2 stitches together (Photo 1), but leave the stitches on the left hand needle after working them (Photo 2).
Knit into the first stich again (Photo 3).
Remove both stitches from the left hand needle (Photo 4).