When you see the sombrero-shaped formation, turn off the main road and explore the dirt roads. They are navigable via regular car. You can also explore the banks of the San Juan River closeby.
I enjoyed the drive and hike toward the "indian blanket" design hills and found a mound where I could climb up for a 360 degree view of the San Juan River and Mexican Hat Rock. It's a great place to take pictures.
There are more things to see in the area. Keep driving and head toward Goosenecks State Park, Muley Point Overlook and the Valley of the Gods.
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