THANK YOU!! To everyone who has asked questions or made comments about this little cocoon creation of mine. I get such a kick out of talking to people who are using my pattern. :) I first published this little baby sac nearly 3 years ago and I never get tired of seeing it pinned all over pinterest.
If you would like to order a custom made cocoon or tulip hat from me ($30 plus $4 shipping), please visit my facebook page at: Loops A Daisies. I sell the cocoon and many more items at very reasonable prices. Message me with your order. I use paypal. :) Thanks for all the Pinterest activity!!
I use Simply Soft Caron Yarn. These are Newborn sizes. I just "tested" them out on a friends 8lb one month old and there is plenty of room for wiggling and growing. :)

If you are a crocheter, here is the pattern for the
TULIP HAT. I did not come up with this, but the person who created it, Suzette Williams, was very gracious to make it a free pattern with no restrictions. I felt the least I could do was to post her pattern credited to her. The curly-cue stem is not part of her pattern, but can be made very easily. After closing the top according to the pattern, use the G hook and chain 15-17. Work three hdc in each chain. Fasten off, leaving a long enough tail to pull through the inside of the hat, tie off and weave ends in.
Here is the pattern I came up with for the cocoon. I am not asking any money for it, but would very much appreciate the credit if anyone chooses to sell their item or repost the pattern somewhere else. Thank you.
Sallie's Tulip Cocoon:
Use an H hook.
Start with 6 hdc in a magic loop.
Do not chain up and do not connect
with a slip stitch.
This pattern is done in rounds.
Use a Marker to know when one round has
been completed. I insert the marker into the first stitch of each
new round right after I have crocheted it. This shows where the first stitch of the next round will
go.
Rnd 2: 2 hdc in each stitch (12)
Rnd 3: *2 hdc , hdc* repeat around (18)
Rnd 4: *2 hdc, hdc, hdc,* (24)
Rnd 5: *2hdc, hdc in next 3 sts* (30)
Rnd 6: *2hdc, hdc in next 4 sts* (36)
Rnd 7: *2hdc, hdc in next 5 sts* (42)
Rnd 8: hdc in each stitch around (42)
Rnd 9: *2hdc, hdc in next 6 sts* (48)
Rnd 10-13: hdc in each stitch around (48)
Rnd 14: *2hdc, hdc in next 7 sts* (54)
Rnd 15-18: hdc in each stitch around (54)
Rnd 19: *2hdc, hdc in next 8 sts*
(60)
Rnd 20-23: hdc in each stitch around
(60)
Rnd 24 *2hdc, hdc in next 9 sts* (66)
Rnd 25-33: hdc in each stitch
(If you desire a longer cocoon, add rows of hdc here.)
Rnd 34: dc in each stitch around
Rnd 35 *fpdc, bpdc* around
Rnd 36 and 37: repeat round 35
Rnd 38-41: Crocodile stitch - The
crocodile stitch is comprised of two rounds of stitching. The first
round will serve as the foundation for the actual crocodile stitch. Here is a blog with videos to teach the
CROCODILE STITCH
Rnd: 38: ch 2, dc in same stitch as ch
2, ch2, skip two stitches, *2dc in next stitch, ch2, skip 2 stitches*
repeat the part that is in asterisks all the way around. Slip stitch
to the top of the first ch 2.
Rnd: 39: Working on the initial ch 2
from Rnd 38, work 5 dc AROUND THE POST of the ch2. You will work
from top to bottom. The fifth dc will be at the base of the post.
Turn your work so that you can now work around the post of the next
dc. Work 5 dc AROUND THE POST of the dc. You will work from bottom
to top. This is the crocodile stitch. Skip the next set of double
crochets and work the crocodile stitch (5dc down, 5dc up) in the next
set of double crochets from the previous round. Continue working
crocodile stitch in EVERY OTHER set of double crochets. Slip stitch
into the first dc worked around the ch 2 of the previous round.
Rnd 40: You will be doing the same
stitches as round 38, but you will do them in between the "V"s made
by the dc in round 38 and between the crocodile stitch made in round
39.
Rnd: 41: repeat round 39 working in dc
that are offset from the previous round.
Rnd: 42 sc around
Fasten off.
If you would like, you can thread a
3/8" width ribbon through the dc ribbing for added interest.
If you find anything amiss or incorrect, please let me know. Thank you!
*** Special thanks to Paula at
FurBabiesMomma for helping me to make this pattern easier to read. I love learning knew things and appreciate others who are willing to teach. :)
You can find me on Ravelry.com at: Loopsadaisies

Added: 12/31/15
This cocoon was stitched exactly like the pattern with the exception of a color change when doing the dc's.
Added 1/15: this is the sock monkey version of this cocoon. I used caron in Heather grey, Autumn Red, and white. I added extra hdc rounds and omitted the crocodile stitch. The hat was from a pattern by Lagatha Been on ravelry.com