One of my favorite things to make as baby gifts are car seat blankets. They are super easy to make and are a very functional thoughtful gift for that new little one. These are called car seat blankets because they are just the right size to tuck that peanut in. Don't be surprised if these little blankets become loveys, they are just the right size!
I start with two fabrics that compliment each other. I love using this minky fleece (or the not so soft knock off brand that JoAnn's carries for WAY cheaper).
Then I cut my fabric in a 19x19 square. Place your right sides together, stitch around the edge leaving a small opening for turning. Turn your blanket (make sure to poke out your corners), press it, paying special attention to where you left your opening for turning, and then top stitch all around making sure you catch the little spot you left open. Wrap it up, and put a tag and a bow on it. That's it!