So simple, so magical and so much fun. This rabbit in a hat is a trick you can do in illustrator with these simple steps.
Start the hat with an oval.
Duplicate the oval and make it smaller and a darker fill.
Duplicate the inside oval and make it the same color as the outer part of the hat.
Duplicate the oval so there are two.
Draw a rectangle between the two ovals, making sure the corners of the rectangle touch the ends of the ovals.
Use the Shape Builder Tool to add the the bottom oval and the rectangle together. Use the OPTION key with the Shape Builder Tool to delete the top half of the oval. Copy the final shape and create 2 copies. One for the next step, one for later.
Select the shape and click the Draw Inside Mode at the bottom of the Tool Bar. Paste the shape inside and fill it with a different color. Move the shape up towards the top of the shape. Click on the Draw Normal Mode.
Place the shape under the hat rim.
To create the rabbit, draw a circle.
Draw a line with rounded (hot dogged) ends.
Use the Width Shape Tool to widen the top of the line for the ear.
Choose Object>Expand Appearance to convert the stroke to a shape.
Use the Offset Path to create a smaller shape inside the ear, fill it with pink.
Duplicate the ears and place them on the head.
Use circles for eyes and draw a triangle and use the Corner Widget to rounded corners of the nose. Group all the shapes together.
Select the shape you created 2 copies of, no fill, no stroke.
Place the shape at the top of the hat, then click the Draw Inside. CUT the rabbit head and paste it inside the shape. Click on the Draw Normal mode.
Now the rabbit is peeking out of the hat.
Add a few circles to create magic above the rabbit.
Create a spiral and add a stroke the same color as the inner ears.
Create a dotted line along the spiral by clicking on the Stroke Panel, click on the Dashed Line, set the Cap end to rounded (or you won't get dots) the set the dash length to ZERO and the gap to 12.
Place the spiral under the hat and scale it to fit. The magic is done.