What to do with that Alpaca???

It's kind of difficult to see because it's black, but that was the hat I was knitting for the hubby. Nicole and I were sitting down last night and were knitting. She looked at the hat and said "Gee mommy, that looks really big!". She was right - I took it off my needles, and although I had my guage, it seems that Alpaca does not hold a good shape. I frogged it and started again, but cast on 20 less stitches. I am getting the idea that Alpaca might not make a good hat. I'm thinking it will just slip off his hair. I have to think about this one. I would make a nice scarf, but he doesn't wear them.

Another day, another fiber lesson learned..........