here comes help:
[B]k2tog[/B]: knit 2 together. you insert the needle into 2 stitches simultaneously as if to knit and then knit them. you knew that, I guess.
when the instruction says:
[B]Rnd 1: With MC, *K2tog, K11; rep from *[/B]
that means: you work with your main color. the stitches 1 and 2 you knit together. then you work the next 11 stitches as knit stitches. each on its own, just regular. then you repeat that section and knit the next 2 stitches together… 11 more regular… and so on. you should be able to fulfil that sequence with the stitches you have. (I guess 6 times total)
when it says [B]“60 stitches”[/B] in round 5, that means, that “when you are done with the round, that is how many you have left”. (that is why I know that you do this 6 times)
I calculated that you start out with 78 stitches - then decrease by 6 stitches total 3 times in rounds 1,3,and 5 0 18 stitches less, makes 60 stitches.
[B][I]now, what confuses me[/I][/B]… you work on regular needles… do you mean straight pins with a “stopper” on the one end and a tip on the other? (=straight needles)
or do you have 2 needle tips joined by a plastic cord (=circular needles)?
your pattern works in rounds. that means that you work it on and on and on. there is no ending to the stitches coming. you produce a tube / hose / pipe by that.
if you work on “straight pins” you produce a flat piece. that is not, what your pattern wants you to.
do not take it so hard, though. [B]if you have produced a flat piece[/B], you can sew it up in the end. A lot of hats are done that way. you will - most likely have ended up making garter stitch instead of stochinette (look it up in the video section). But… oh, well, for a first project…
just garter stitch will come out shorter for the same amount of rows (because it is thicker), so if you did the main part of the hat by row numbers, then measure carefully how long it got (it does need to cover your ears, you know 
)
if you work a flat piece, you can just keep working on those needles and go to the end, then sew up the seam and that is it.
[B]if you are working in rounds [/B](producing a tube) and you are not working with dpn yet, then you work on circular needles.
well, then you have to face the challenge that towards the top of your head, the had will get smaller and smaller and therefore the cable of the circular needles will be too long and the stitches will be stretched really far on it until even that will not work.
there are a few ways to get around that problem.
working on double pointed needles (a set of 4 or 5, depends which set you get)
or working magic loop (there are videos about that technique everywhere, just google)
good luck and keep knitting!
)