Receiving blankets are fine but I'll tell you what I make for newborns. I make burb cloths with flannel and batting in between. I made 6 of them for my daughter (3 per yard) and she loved them. When you purchase them in the store they are so thin that they really don't absorb well. I made them like a pillowcase, left about 4" open and turned them inside out and hand sewed them closed. I then machine quilted them on the diagonal. She always encourages me to make them for baby gifts instead of buying a gift.