i generally make receiving blankets for new babies of friends and family. they are very simple but always seem to be appreciated. Two pieces of flannel, wrong sides together, one with white background on top and two inches smaller all around, and a brighter/darker/more colorful on the back. I turn the edge fom back to front, mitre the corners and stitch down with one of those decorative stitches you might not ever use. My Bernina makes one alphabet and I write the child's name in about a dozen places over the whitish side.
I made one for a friend's adult daughter who was going through chemo -- with larger squares and the family wrote notes on the empty spaces. she said it was like a warm hug when she took it with her for each treatment.
When she died, the family told me they buried her in it.
I am sure this precious baby already has a name -- you could even embroider it on by hand in several places.