In a large mixing bowl, combine softened cream cheese, butter, dry Italian salad dressing mix, shredded cheddar cheese, and chopped pimentos. Beat the mixture on medium speed until creamy, about 2-3 minutes.

Scoop out 2 tablespoons of the cheese mixture into a small bowl and refrigerate. Wrap the remaining cheese mixture in plastic wrap and chill for 30 minutes.

On a flat serving plate, spread half of the chilled cheese mixture into a 6-inch circle for the brim.

Form the other half into a 4-inch ball, wrap it in plastic wrap, and chill for 30 minutes to an hour.

Carefully lift the ball and place it on top of the brim, shaping it into a cone.

Sprinkle the hat with poppy seeds, pressing them gently into the cheese mixture.

Use the reserved cheese mixture to attach slices of carrot around the base for a decorative band.

Cover loosely with plastic wrap and refrigerate for at least 2 hours before serving.