I am doing this very thing!! It means lots of fusible stabilizer for that knit fabric. I loosely followed a pattern--Baby Craze by Terry Stark. All the stablized fabric is sewn onto a foundation piece, so that makes it work. Now I'm working on a border and had to round up more clothes. If you want, you can do a search of my name and see what I have done so far! I don't have that pic saved on this computer.
If I ever do a baby clothes quilt again, it will be simple squares!!