In the line:
Ch 46. Join, without twisting, to form a circle. Sc around for 7rnds. Turn inside-out, and crochet to the left again (which is the way you just came) sc in the FRONT LOOPS ONLY. Sc for 6 rnds. Join with a sl st. Ch 2.
From this point, continue onto the rounded part of the hat. If you continue from the ridges you just made, the unfolded hat would look like this:
Now, if you were to fold over the bottom flap, it would completely hide the ridge you just made. Instead, I suggest starting with the ridges first, to make it look like this:
Right Side Out:
This way, once you turn it right side out, fold over the flap, the finished hat looks like this:
Hope that helps. I suck at drawing... >_<