First I knit her this pink blanket:
I made it with Plymouth Encore yarn, so it could be machine washed. I think it turned out well!
I also knit these baby booties, out of angora yarn, and sewed a small bag to keep them in:
I hand-embroidered the baby's first initial on the bag.
My cousin's favorite of the presents, though, was probably the easiest--a minky & flannel blanket with Cinderella on the flannel. My cousin is a huge disney fan, and the blanket was extremely soft.
When my aunt saw it she decided she wanted one for her child too--but with Ariel instead. :) So I've bought the fabric for that and will be making it shortly.