The only way I could think of using this odd hat is by using it in a cold weather outfit. The hat is so thick and plump that it seems perfect to keep your ears warm. It comes from the Volume I epic quest line, but I have seen it as a rare world drop too at some point.
This is an all old-world outfit, it doesn’t use any items from the RoI expansion.
If you want to know where a certain armour piece or cosmetic comes from, you can look it up in the Lorebook, by typing its name into the search box. You can equip any piece of armour cosmetically through the wardrobe, even armour that is not meant for your class or level.

Chest : Great Hoary Aurochs Robe, sea blue dye (crafted T5 Forochel Reputation, light)
Head: Faercharab, umber dye (Vol.I, Bk.7 reward, light)
Shoulders: Yule Scarf, umber dye (Yule Festival, cosmetic)
Hands: West-land Gloves, umber dye (crafted T4, heavy)
Feet: West-land Boots, umber dye (crafted T4, heavy)
Back: Cloak of the Silver Star, umber dye (skirmish and lotro store, cosmetic)