I started on Christmas when I started knitting a few months back: I fell in love with grandmothers favorite dishcloth pattern. Easy peasy, and I can finish one in a couple nights. Yes, I knit slower than Christmas. LOLOL We give little hostess type gifts like that to the ladies in our family when we go visit.
And I made a special lace patterned washcloth for my niece, who sent us a beautiful hand knitted afghan a couple years back. Nested with some pretty girly bath soaps it will be pretty. I think she'll like it.