What can I knit for a newborn?

[catownedanna]

My cousin is due with her first child on Saturday (Feb 11th) and when I found out about the pregnancy this fall I decided to knit something for the little one.

Next week I'm going away for a couple of days and I can't really bring any of my ongoing projects (too heavy, too large or too long needles) on the train. I thought I could stop by my LYS later this week and get some yarn and needles for a new project.

The only question is; what project??? I need something that can be useful or fun for the parents or the baby, easy to bring and not too complicated as I'm knitting on a train.

Do you have any ideas? I was thinking stuffed animal, hat and mittens, simple sweater or something like that.

Thanks for sharing your ideas and patterns! :D