Congrats Danna.. There is nothing better than being a grandma :-D
The first baby quilt I did for my GD was a pink, blue and yellow 9 patch.. I made it crib size and used flannel as the backing..That was the one she used to come home from the hospital in.. I also did one called Baby Magic from Joanne's Crafts.. I did it in the pink, blue and yellow.. The link is below...
http://www.jeanneraecrafts.com/babymagic.html