Congratulations, Grandma!!! Perfect Christmas gift for you :-D
For my one and only granddaughter I made a rail fence in pastels - yellow, blue, pink baby-themed flannels. I tied it and hand-quilted with embroidery floss a heart in every square. I did alternate the way the heart was facing so there is no wrong way to place the quilt. She loves it and at 3 still naps with it. Of course, now I'm making some with the alphabet...poor child will be inundated with quilts her whole life!
I began quilting when my DGD was 2 months old, and my first quilt was made for her...Turning Twenty Again. I made it twin sized and had the lady who quilted it for me put the names/birth years in all the larger squares, back to her great-great grandparents. Her full name and birth date were on a square, but everyone else had their full name and year of birth in the squares...made for a beautiful, useful family tree!