For Hannah
I do so love knitting for babies. Here's a wee ensemble that I finished back in February and sent to some good friends for their new baby girl:

Cardigan Pattern: "Plain Jane" by Minnowknits
Hat Pattern: "Candy Cane Hat" by Penney Kolb from Holiday Handknits
Yarn: Schoeller+Stahl Portofino, colors 4774 and 4708
Buttons: LYS
I knit this in the 1-year size (to hopefully fit her in the fall) and needed two balls of each color to finish both the cardigan and the hat.
Most of my baby knits also go out with this CD, which I cannot say enough good things about. Fun, soothing music that parents enjoy listening to as much as children do.