I proceed like that until I have about 12 stitches. Knit a few rows even. Do another 4 increase rows, and knit even till there are 18 garter stitch ridges. Then increase about 4 more stitches following the same plan. Knit 2 rows even and then decrease on the next two rows to make the very bottom of the ear curve.
Hair can follow the same plan.
I did a pageboy haircut on the last puppet. I picked up adequate stitches to go around the head and increased until it swung freely from the head. I picked up stitches across the back of the head and knit bangs down. I increased in the same fashion but did not decrease to make nice floppy bangs that came down to the top of the eyes. It is easiest to attach the eyes when the top of the head is finished but the bottom jaw is not yet started.