I have been collecting wooly hand knitted items for baby, I hope he/or she is not allergic! but I think it's so nice compared to the man made fibres fleece etc. Quite a few of these things were bought on our recent trip to Iceland (you can see other posts on handicrafts of Iceland http://donnawilsonsblog.blogspot.co.uk/2012/08/handicrafts-of-iceland.html)
I think this is a knitted nappy cover!
The tiniest knitted booties!