Cover hat area with black fondant, flaring out at top. Cut gray hat band, 3/4 in. wide; indent with spatula and attach with damp brush. For brim, cut a 12 x 2 in. piece of black fondant, fold lengthwise in half, pinch at edge and attach with water; smooth edge with fingers to blend into hat. Using pattern, cut out green fondant holly, roll red balls for berries and attach with melted candy.