Above is a baby shower present I gave to my husband's cousin this past spring. The is the Heirloom Aran from IK04, knitted in gray Rowan wool/cotton. This sweater was a challenge, but worth every ripped cable (there were several). Even though the parents were expecting a boy, I choose the gender neutral color so that the sweater could be used for any gender, as this was for the first baby in the family.
Under the sweater is a simple receiving blanket I sewed -- it's flannel on one side and fleece on the other. I used the blanket as the "wrapping paper" for the sweater, and tied it with a blue grosgain ribbon.