Some people will say Sugar and Cream, but I think it's too rough and not soft enough for facecloths myself. I just got some KP Shine for tank top and I'm thinking it might make a great facecloth! It's really soft! I'm sure there are others, but I don't know a lot of yarns yet.
Here's a link if you want to see it. I got the sport for the tank top.
Shine Sport and Shine Worsted