I use the dishcloth pattern as well. Then when I am finished it, I string 1/4" satin ribbon through the holes and make a bow at one end. You could even put a bow at each corner if you wanted to. I used the Baby Clouds bulky yarn last time and it took three skeins up and three back down. I was told that a newborn baby blanket is usually 26" across, so I knit until the work measured 26" and then started to decrease. The advantage of of this yarn is that it is SOFT and verigated so that when you are finished it looks like a rainbow. Very pretty and cozy too. Good luck!
I love to give homemade gifts... which one of my kids do you want?
Find our "Canadian Oddball Blanket KAL" on Ravelry as: OddballBlankets