This is a pattern that I actually found on Ravelry a long time ago but because it was hosted on Geocities is no longer available. I was disappointed in that I was looking for the pattern again to make it and it wasn't until my toddler dumped over all my printed patterns that I found the pattern!
So, without further adieu, I will repost this FREE pattern with credit given to Jenn Belcher
Basic Toddler Hoodie
2 - 3.5 oz skeins of Bernat Softee Chunky (or similar gauge yarn)
Size US 10.5 DPN (set of 4)
Size US 8 DPN (Set of 4)
CO - cast on
k - knit
p - purl
k2tog - knit two together
pm - place marker
sts - stitches
st st - stockinette stitch
* - repeat until end of row
PU - pick up
BO - bind off
With larger needles CO 56 sts. Join in the round and knit one round.
Found 2: Place stitch marker, k 8 sts, pm, k 20 sts, pm, k 8 sts, pm, k 20 sts (this marks the sleeves)
Round 3: Increase on both sides of each stitch marker. You will have 10 in the sleeve portions and 22 across back and front portions.
Round 4: Knit
Repeat rounds 3 and 4 until there are 34 sts between stitch markers for the sleeves. On the final "Round 4": * k first 34 sts and place on stitch holder, k 46
Work even in st st for approximately 7.5 inches (or adjust according to the height of the child)
Switch to smaller needles and work in k2p2 rib for 7 rows. BO in k2p2 pattern.
Round 1: k the 34 sts on first holder and PU 2 sts in the underarm.
Round 2: Knit
Round 3: k2tog, k 30, k2tog
Rounds 4 - 6: Knit
Repeat last 4 rounds until 22 sts remain
Next Round: Decrease each end of round one more time (20 sts)
Switch to smaller needles, work in k2p2 ribbing for 6 rows
BO in k2p2 pattern
Repeat for other arm
Find the center of the front and mark off center 6 sts
Using crochet hook, PU remaining 50 sts around neckline on larger needles
Knit 1 round
Increase 6 sts evenly spaced across next row
Knit in st st until hood measures approx 8.5" (or measured according to size of the child)
Divide sts evenly on 2 needles and fold hood so right sides are touching
Work 3 needle bind off across.
PU sts along front edge of the hood with smaller needles and work 4 rows in k2p2 ribbing
BO in k2p2 pattern
Sew to unworked sts on neckline.
Once again, I'd like to enphasize that this is NOT my pattern and that I am simply posting it back on the interbutts for anyone who might be interested in making it.