Cut the paper plate into a small circle. Depending on the type of plate, there may already be a guide line. You’re basically cutting off the rim of the plate.
Glue yarn across the bottom. Be sure to use a long enough piece so that you can tie the hat onto the child’s with the yarn.
Glue on a portion of paper doily or mesh fabric to be that thingy that hangs down. (Obviously I was not cut out to be a milliner.)