I have found that JCPenney has the best sales on quality towels. Sure you can go to any Mart and find them for a few cents or a dollar less, but they aren't as soft. Also, I am a huge JCP fan for pretty much everything else they have so I'm loyal like that.
You'll need two regular sized towels and one hand towel plus any embellishments you like. Keep in mind this will make two separate towels, so you can give them as a set or spread the love. I have done solid on solid, stripes on stripes and solid on stripes. You can't go wrong. I enjoy the different color combinations.
Now is the time to add a strip of ribbon if you choose to. Sometimes I do, sometimes I don't. I love animal prints especially zebra, it's my favorite. Cut a piece long enough for the hand towel. I have used Fray Check but I don't especially love it. You can reach the same results by melting the ends of the ribbon. This prevents it from becoming a frayed out mess. Keep the ribbon out of the flame. It only has to get by the flame enough to warm it enough to melt.
When I give this as a gift I like to add a bottle of baby wash tied to the towel with raffia. No fancy wrapping required.
When I read other blogs I feel like the women lead perfect lives. They never post the normal every day flops we all encounter. I know that no one can ever measure up to the perfect lives we lead when blogging so for the sake of making myself sound less than perfect here is a quick story to make this more real life than fake planet. A friend of mine had her baby in November. I had surgery the day or two before he was born and the recovery for me was so much slower than I anticipated. I had the towel for her that just sat and sat and sat. I don't know how many times I saw her after the baby was born. Finally after countless trips to the store and visits with her I just handed her the towel last week. I said, "Sorry, this is lame there is no bow or baby wash, but I made this towel for your baby and I'm sick of looking at it." How's that for awesome?