Measure the head of the person wearing the costume, to make sure you have enough felt to wrap around the head. Place two red felt sheets together, draw out a triangle shape on each, and then cut along those lines. Once the felt is cut, glue the edges together to create a cone shape.
Fold the top of the triangle in so that it creates some area for the puff balls to be glued on later. Cut white strips into even, horizontal lines, making sure they are long enough to cover the front of the hat. Line up the white strips over the red hat so they are evenly placed on that side of the hat.
Glue the tip of the hat to each end of the strips, leaving the excess white felt in order to line up the other side. Line up the other white strips so that they are even with the front of the hat, aligning them with the excess felt from the other side, and then glue the ends again. Cut off all the extra white felt, angling it along the triangle shape of the hat.
Lastly, start gluing the red puff balls onto the top of the hat. Using the biggest ones first may be easier because it gives some extra area for the other smaller ones to be glued on. Let the glue dry for at least ten minutes, and you are done with Waldo's hat! Put on your jeans, red-and-white striped shirt, shoes and glasses, heft your satchel and camera, and you're ready to be found!
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