I'm currently working on a baby Kimono and Trouser set from Debbie Bliss' Baby Knits book. The pattern begins at a size 3-6 months but I'm trying to size it down a notch so that it will be suitable for a newborn. And I've substituted the suggested Debbie Bliss yarn with Brown Sheep's Cotton Fleece.
Why a Kimono? My friends (the soon-to-be-Grandparents) run the local TaeKwondo school, and their daughter (the soon-to-be-Mom) is a talented black belt. Given the family's love of martial arts I decided that this might be a fun pattern to make. (I have a dorky sense of humour, but I hope they get a kick out of it too.)