For all those who are holding their breath about the soft yarn at Michaels', I will go tomorrow and check it out and get back to you. Sorry to be such a yarn tease!
Ingrid - for my baby longies, I use Malabrigo yarn. INCREDIBLY soft and scrumptious, though it does pill a bit. But my little girl seems very happy in it. For baby socks, I use Art Yarn supermerino, which is a nice washable yarn that knits up nicely. For a hat I'm making, I'm using Debbie Bliss baby Cashmerino, which does have 33% microfiber in it. It knits up beautifully, though, and has a lovely drape and touch.
I'll probably use more of the Baby cashmerino for a sweater. Oh yeah, and I ordered 4 skeins of Sheepsdown from EZ/Meg Swansen's site to make a baby blanket. It knits up at 2.5 stitches per inch
and s a little rougher than I thought it would be. However, decent washing in Eucalan, plus some blocking, should produce fine results. I'm considering using the yarn for a sweater for myself, however, and finding another wool for Miriam's blanket.
Now I'm kind of curious to try alpaca yarn. Does anyone else have any experience with it? How does it wear? Lots of pilling?