Have you tried Amity Print from Ella Rae? We brought this yarn in last fall and are overwhelmed at how popular it is! It's soft, it's self-patterning, and it's machine washable. Hurrah!
So many customers fall in love with the cheerful colors of this yarn. And many decide to make the Oliver Cardigan on the cover of the Knitwear for Children Booklet #102 because it's completely adorable.
Others grab a ball and make this little baby hat. It's a great gift and the pattern (though included in book #102) is also available for free in the shop when you purchase a ball of Amity Print.
We just got two new colors in this yarn, and they're perfect baby colors! One pink and one blue...