This is all very basic single crochet, increasing every so often to match the size of the wearer's head. You'll start out increasing one every stitch, then every third stitch by the time you reach the outside fo the yarmulke. Crocheted paracord has lots of flex, so you should be able to mold the yarmulke to exactly the shape you prefer with ease.
I found my metal #9 crochet hook was fine for paracord - test your stash of hooks to see what works.



































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And yes, I hear you on the painful bit - paracord is significantly rougher than yarn. At least this one goes fast.