This is a Puffy Braid with a bit of flair to it. Start by sectioning out half of the hair on top of the head. Now Part that section into two pieces. (Part it a bit off-centered for a better look.) Not tie one half off with an elastic to make working with the other side easier.
Always start your parts from the name point, creating a "star" effect. On the larger half you should end up with 4 sections and the smaller half should have 3 sections. Tie each section off with an elastic (close to the front of the head) and make sure that you add the previous hair into the new elastic-section. Hopefully that makes sense and if it doesn't than hopefully the picture will help. When you get your last elastic in on each side, pull the two ponytails together around the back of the head and secure it. You can let the rest of the hair fall however you like. My princess has naturally wavy hair so we've straightened it with a flat iron here. Tie a ribbon around the back elastic and you're finished!