I know sanity drops when fighting monsters. Supposedly wearing certain hats like the tophat or flower hat can make sanity go up. Also sleeping in a tent or something generally brings your sanity back up quickly.
Make the winter hat. It's like the top hat for winter.
It should get you by until you get the tam o shanter. The tam has ridiculous restore rate for your sanity. --- i7 3930k @ 4.0 // Zotac GTX 680 2-way SLi // 2x Crucial 256GB SDD in RAID 0 // ASUS 23" 120Hz Monitor