Questions about Hooded Hat

I’m currently working on this pattern:
and I’m finding the instructions a bit confusing since I am a new knitter. Here is where I got lost:

[I]Continue in rib pattern, K2, P2 for about 1.6 (1.6) 2 (2)".
On the next round K 16 (18) 20 (22) s in rib-pattern, cast off 8 s, K 16 (18) 20 (22) s in rib pattern.
Cut the yarn.

Place marker where you´ve cut the yarn (end of the original round, as [B]this is where you´ll increase for the back of the head[/B]). Slip all stitches on the left needle on to the right needle.
[B]Start knitting in garter stitch back and forth.[/B] [COLOR=“Red”](I just cut the yarn…what should I knit with? Am I joining in new yarn?)[/COLOR]

K2tog at the beginning and end of every second row 2 (2) 3 (3) times in total = 4 (4) 6 (6) s decreased = 28 (32) 34 (38) s.

[B]AT THE SAME TIME, increase on every second row for the back of the head like this[/B] [COLOR=“Red”](this part confuses me endlessly…does the “back of the head” refer to the place where I cut the yarn earlier? How am I knitting in two places at the same time?)[/COLOR]:
Knit until 1 stitch remains before the marker, increase 1 (make 1 right)
Knit 1 stitch past the marker, increase 1 (make 1 left)

If anyone has any experience making hooded hat, your advice/clarification would be much appreciated!

This is my 2nd time knitting with circular needles. My previous project was a beret. Not much experience really…I’ve already spent about a week on it and now I’m completely stuck…

Hi and welcome to KnittingHelp!
That’s an adorable pattern and a great project for circular knitting.
Yes, join a new strand of yarn leaving about a 6 inch tail to weave in later. You’re going to be working back and forth from this point.
You’re going to be shaping the hood in two places (that’s the “at the same time”) on every other row: decreasing sts on either side of the opening for the face and increasing sts on either side at the back of the head. Yes, back of the head is the place where you cut the yarn and you should place a marker there. This can be as simple as a loop of yarn in a contrasting color.

Thanks! I guess I’m going to look up on knitting back and forth
Just curious, what would my finished knitting look like before seeing the hood together? Like a Y shaped fabric?

The hood is going to be more rectangular with a bit of peak at the center back due to the increases.
Good luck with it and post a photo if you’d like when you finish. Looks like great fun.

So, today I finally finished it! It turned out to be so cute!!!
However, I made the mistake of knitting it with alpaca wool, which is a tad bit scratchy and little one absolutely hated it. He was just ripping it off the moment it was put on. Ugh, so much for the expensive natural fibre yarn…I might go for a soft, non-scratchy, acrylic blend baby yarn next time.

That’s adorable. Maybe you can soften it some. Have you washed it? I can’t say from experience but I’ve read that hair conditioner as a rinse helps.

That is perfect! Wonderful work.
Try just washing it first. Alpaca is beautifully soft and warm and that will come through as the yarn relaxes and any chemicals it was treated with wash out.
Thanks for the picture.