Things you'll need:
Foam hat shape
Exacto knife
T-pins
Felt
Ribbon
Paper
Pencil
White glue
Plastic Wrap
Step one: Find a Styrofoam object that approximates the head size of your squirrel and creates a nice dome shape for your hat. This will be used as your hat block. In my case I had an old easter egg lying around. If necessary carefully cut and shape the Styrofoam to create the dome shape you are looking for.
Step two: Wrap your hat block in plastic wrap. Don't skip this step no matter how much you think that the tiny glass balls on your easter egg should keep the glue and hat from sticking to the block.


Step four: Now that your dome is nice and dry and stiff it should (if you managed to use plastic wrap) release easily from the hat block once you remove the pins. (if you did not use plastic wrap you will have to carefully cut the hat block out from felt piece by piece.) Carefully cut off the excess felt that is not to be part of your hat dome.

Step five: Place your bare dome on a piece of paper and sketch around it the ear flaps and brims you will require. Use this time to adjust dimensions as needed. Cut out the ear flaps pattern making sure to leave extra length at the end so that you can flip a bit of it into the inside of the hat. Cut out the brims in big D shapes (as opposed to C shapes). You'll need the extra to attach the brim and for mistake wiggle room. Tape the patterns to your dome to make sure that they work well.
Step six: Cut out the ear flaps from felt. Attach bits of ribbon to the end. You may need to use glue to reinforce the felt at the ends that are being sewn. (If you hate sewing that's cool. Just use gel superglue to attach.) Attach the flaps to the dome with glue and a few quick stitches. Once attached and the glue is dry carefully tie the ear flaps up with the ribbons.

Step eight: TADAA! You're done! Unless you're feeling like a perfectionist and want to line the hat on the inside so you can't see all the attachment points. Honestly though it's for a taxidermy squirrel. Fuck it.
Update: And now for your viewing pleasure. In all his ::cough cough:: natural glory. Squirellock Holmes.