Great story, great gift!....how old is your daughter? (I'm guessing early twenties?)
When she finally learns to knit well (after many more projects) she won't be able to knit lumpy, crooked things like this, which will make it even more of a treasure. I love things that look quite ...well, untamed for want of a better word.
BTW: Lotta lovely paintings on the wall behind you - did you do them?