It looks like you'll be knitting down to where you only have a few stitches left after you k2tog. I usually just cut the yarn leaving enough to thread on a needle then I just go through the remaining stitches in the same direction I was knitting to form a sorta drawstring. Sometimes I'll go thru the stitches twice to be sure it's nice and tight. Then I knot it off inside the hat and weave on the end.
Re: Knitting Question
Thanks! That's what I've done too, on the other 3 hats I've knit, but the instructions said to do it that way for those