Measure the circumference of your pumpkin, rounding up to the inch, and add 4. Then divide that number in half, rounding up to the inch.
Fold the fleece fabric in half and measure away from the fold the number you just calculated. At that mark, cut up from the bottom for four inches, then cut back at an angle to the top corner.
This is what the hat fabric looks like now. Lay it in front of you with the right side up.
Fold up the bottom edge 1/2 an inch and hot glue. Then fold again, this time an inch and a half, and glue. This creates a cuff for the hat.
Next you'll cut a beard. To get the beard width, go back to the original circumference number plus four, and divide that by 5. To get the beard height, measure how tall your pumpkin is and divide that by 2. On the back of the fur, trace a beard shape using the width and height you just calculated. Carefully cut out the beard, only cutting through the backing and not the fur.
Cut about a third of the styrofoam ball of to get a flat back, then cover the ball with the sock or pantyhose and secure with hot glue.
Glue the beard to the center of the hat, with the hat over the top of the beard. Glue the nose onto the beard, slightly overlapping the hat.
Fold the hat in half right sides together, and glue the two diagonal edges together.
Turn the hat right side out. Fold the extra fleece fabric into a triangle shape that will fit inside the hat OR stuff the hat with stuffing to help it stand up.
Place the hat on top of a pumpkin to transform it into a gnome. If you plan to display this outside, you should glue the hat onto the pumpkin so it doesn't blow away.