Hi Mel,

When my last two grandkids came along, I did diaper bags with in the hoop accessories.  Diaper wipe cases, pacifier cozies, hanging cases for the bottles of hand sanitizer and other cases mom could use for carrying all the extras a baby seems to need. 

I also did an in the hoop quilt that was applique, I believe was from All Sorts Embroidery.  I would have to check that to be sure.  Some of my favorite places for baby things are listed below.

Purple Hat
Five Star Fonts
Moose b Stitch in
Digi Stitches
A Time to Stitch

And I have a lot of baby designs from Embroidery Library and Anita Good design

Hope this will help get you started on sewing for that new treasure.

Oh, one other thing I add as a gift for a new baby is a bib made from a hand towel.  I embroider  "I'm the birthday boy/girl" or "It's MY birthday".  They are a good size for eating that first birthday cake while keeping the clothes clean!  Also good for tots learning to feed themselves.

Sue in WNY