Here is a cute "teddyghan" pattern only it is crocheted but might give you some ideas. It is a lot bigger than the Lion Brand Bunny though. (20" x 20" + teddy head)
Buddy Bears knitted and made for charities. You could maybe use the head shape and then the blanket part from the Lion Brand pattern.
Here is one that should work if you just put a teddy bear face on it.