This is slightly oversized for a newborn so that it will still be a comfortable fit for a little older baby. My son wore his to bed until he was about 6 months old.

yarn:

Caron Simply Soft (old stock) coffee - 1 skein (dark brown)
Caron Simply Soft Country Charm - 2 skeins
Caron Simply Soft Bone - 1 skein

Finished size: 13” x 22”, 10.5” at the end of row 5.

Using double strands of Caron Simply Soft and N hook, this pattern will use just about 800 yards. Using a chunky yarn like Loops & Threads Charisma and L hook, it will use 350 yards.

Reindeer hat shown in one of the photos is from Repeat Crafter Me http://www.ravelry.com/patterns/library/rudolph-the-reind...