I also make 36" square receiving blankets. I get 1 yd of fabric and square it to be 36" then I double fold the edges and stitch leaving the corners square. I do not make them double since I think they will be too thick for babies. I give these as gifts and they are really appreciated since the usual 30" square blankets are too small for older then 3mo sold. From the extra 8-9" that you cut off you can make matching burp cloths by flolding them in half and stitching or by lining them with terry cloth. Or you can sew then leftover strips together and make a baby quilt with them.