Here is a quick project I made a couple months ago. I've been trying to make more baby things instead of buying. It takes more time, obviously, but it saves money, and I can make it look however I want! I had some infant towel sets saved from when Kade was a baby, but they were made with very thin material, and don't seem like they would be very warm or snuggly!
For this towel, I used a super soft white bathrobe of mine. The zipper had broken, and I never wore it very often anyway. For the front of the hood, and the back of the towel, I used some black and white hounds-tooth cotton fabric that I found at the thrift store (3 yards for $2!). For the binding, I used a lime green ikea sheet from my son's toddler bed, which we don't have any more. I also made a matching washcloth and two mits.
Kade picked out the black ribbon with the skeletons on it to use as tags.
Here it is in use. It is too small to use for very long, but it's super cute, and doesn't Cole look warm and snuggly all wrapped up in it? :)