Teddybear Hat starts with Fuzzy Fuzz in Lutie, the Snow Village (175, 156). The steps below are read from the quest's script on this server, in the order the script's quest stage moves through them.
Walkthrough
1 Talk to Fuzzy Fuzz in Lutie, the Snow Village (175, 156)
When Room in your inventory for what you get; Script check: not (MaxWeight - Weight) < 2000 Have with you 1 × 
Panda Hat, 100 × 
Needle Packet, 100 × 
Spool, 300 × 
Black Bear SkinIt takes 1 × Panda Hat, 100 × Needle Packet, 100 × Spool, 300 × Black Bear SkinYou get 1 × 
Teddybear HatKnit this on....
Okay, it's almost done...
There is an old saying, 'Everything comes to those who wait.' Oh, are you freezing? Why don't you rub your hands together?
It's complete! There you go. I think this one will look really good on you! Please take good care of this hat.
Script:
npc/quests/newgears/2004_headgears.txt:1114
Rewards over the whole quest
1 × Teddybear Hat
How this page is made: every step comes from the NPC scripts the server loads for Episode 13.2 (the file and line are under each step). "When" lists the checks the script makes before that branch runs; "Have with you" are the items it counts; experience from getexp is multiplied by the server's 50x quest rate. NPC lines are the script's own text.