The actual hat is started by leaving an eight inch tail of the working yarn dangling before you commence the first plain knit round of eight stitches in the working yarn. Once the hat is completed, it is then time to return to the beginning and to remove the cast-on edge. When the edge is removed, you release seven Australian Cousins (the stitch-like loops found upside down and in between the original-direction stitches). (second picture)

The first AC has the tail of yarn already threaded through it, so it is simply a matter of threading the available yarn tail through the other seven loops in turn, neatening them, and gathering the hole closed before taking the yarn tail around for a second time.

Gorgeous finish! (third picture)

You may wonder: why not just cast on regularly in working yarn? The finished result would not be nearly as pretty (see picture at far right).