The next step is another chain stitch embellishment -- this one across the dividing line between the neck flap and the main part of the bonnet.
This time start at the back of the bonnet where the neck flap and bonnet meet. Put a hook through the bonnet (at the bottom of a blue stitch nearest the back of the bonnet) and draw some yarn through. Put the hook through the bonnet again (at the bottom of the next blue stitch) and draw yarn through the loop just made.
Continue in this manner until reaching the front of the bonnet. The first picture shows this process a third of the way through -- though, of course, it's upside down from how you'd be crocheting the chain embellishment.
Then, instead of breaking the yarn when reaching the front of the bonnet, continue to chain. Chain 30 ( -- 6 to 7") or more. Break yarn. Weave in ends. The chain will be used to tie a bow at the front of the hat (another embellishment).
The second picture shows a pair of bonnets. Next time, we'll crochet them together. (They are actually the same size.)
added April 16th: After reading the latest newsletter from Talking Crochet (April 14th, 2009), I discovered that this type of crocheting has a name -- tambour -- French for drum. That makes sense since if one wanted to make a chain stitch embellishment onto linen, you'd have to use an embroidery loop to hold the material tight -- which would look like a drum skin tightened across a drum.