Help me understand the pattern - adding ear flaps

I am creating a hat and it requires adding the ear flaps after creating the hat, I have never done it this way before.
Pattern says:
First earflap: count 4 stitches over to the right of one marker and pick up 14
stitches. For garter stitch, pick up from the outside of the hat (put your needles in from
the outside and pull the yarn through from the inside), and pick up slightly above the
cast on edge (about a stitch higher than you normally would pick up from). [If picking up
from a seed stitch border, pick up from the INSIDE of the hat.]

I am confused about the bolded text. Do I pick up on the cast on edge or up higher? I have done it higher but now I can’t figure out how to continue knitting…

It looks like you’ve picked up from the inside of the hat which is ok too. I actually like the look of this kind of earflap. And it looks like you’ve picked up from about a row above the cast on which is what the pattern is suggesting. If it looks ok from the outside of the hat, then you’re set to knit.

To continue, turn the needle so that the tip is pointing to the right and the working yarn is coming off the end of the needle. Take the needle with the stitches in your left hand and the empty needle in your right. You can then start knitting the earflap.

Well the yarn was on the outside on the hat and I wasn’t able to wrap the yarn around to knit. I took it apart and tried again but it just doesn’t seem right.

What doesn’t seem right?
You could always cut the yarn strand from knitting the hat leaving a tail to weave in later and then pick up the sts from the outside with a new end of yarn.