Yarn: Cascade 220 (lavender and white)
Needles: Size 7 & 9 circular & size 9 dp's for crown
Fair Isle knitting never has more than two different color yarns in the same row. Fair Isle is usually knitted in the round. It is just easier. If knitting a cardigan, steeking is utilized.
This site (<--click) has a wealth of information for a Fair Isle beginner.
I held one color in my right hand and one color in my left hand. Here is a good video to demonstrate this approach..... "Stranded Color Work"
Here's another great reference.... "How To Catch Back Yarn In Two Color Knitting"
I'm off to finish knitting my hat. I've had a busy day.....much more later. I also need to catch up on my blog reading.