Thanks for the nice compliments!
I used a Plymouth yarn called Jelli Beenz in Red. The yarn is pretty soft, but it was hard to work with at first. If you look closely the yarn is actually red with a second strand of colors that change, this strand changes from very tiny to thick. Until I got the feel of the yarn I had to work on not splitting it. Although it's textured you can't really see it unless you look really close at the jumper. I will have to handwash it, but not too worried about that... however if I make something for her again I will look at the label a lot more carefully!
I am all ready to block the second panel, I am not sure who is more excited to see it coming together me or my daughter.