Or, something for her home or office....
A Do Not Disturb sign for her office door (esp if she complains about interruptions!) There is one on Knitty.com somewhere
A waterbottle cozy
A couple of those "coffee bras" that Ive seen floating aroung here somewhere...
A set of matching dishcloths or handtowels or potholders or coaters
A throw pillow (tons HERE
CD case, eyeglasses case, pen/pencil holder
Check Knitting Pattern Central
for ideas....TONS of stuff and free patterns there!