You basically start out with three squares of plastic canvas that are 10x10 holes, the face is one square turned to look like a diamond. I made big loops with yarn for hair and the curly beard. I would trim the point of the hat off the next time (remove the last square.) That would give the hat a different look (this one actually looks a bit like a cowboy hat to me:@). For the brim of the hat, I just cut around a couple extra squares on each side of the face piece. You can, and probably should, sew in every hole of the canvas, since this was just a fun little experiment for myself I kept the face stitches long.
There are many tutorials out there so I won't make another one, there are some good links HERE and HERE.