Print out the template and assemble using tape. Cut out.
Cut 1 3/4" off of the bottom of the template. Test fit and then set aside for the moment.
Choose your skin tone paint color. Paint the bottom of the cone with the skin tone. Paint the wood bead nose that color too.
Cut the fabric of the hat out using the template.
Tape off the bottom of the cone with painter's tape so you don't get adhesive on the skin of the gnome.
Apply spray adhesive to the top portion. Wrap the fabric around, smooth, and let dry.
Cut the faux fur for beards using the template. Trace on the back and then keep the faux fur forward while cutting so you don't trim off all the hair.
Attach a beard piece to the base of the cone using a hot glue gun.
Sand a flat spot on the wood bead using sandpaper. Hot glue the nose in the center where the beard meets the fabric to finish.
Video
Notes
My cone printout was printed on poster setting, full size - it should take four pieces of paper.Tip: The large scrap piece that you cut off the bottom at the widest part of the curve? You're going to use it to draw a line about 1 3/4" from the bottom of your template! Turns out the cut scrap makes a perfect curved line for you to trace.