That is so beautiful, did you just use baby yarn? I love the ribbon. Wow! Did you make up your own pattern?
What is the pattern from?? Please do tell!
The pattern is from one of those little pamphlet-like Leisure Arts books they sell at Ben Franklin and Wal-Mart, called "So Sweet Baby Afghans." The pattern is called "Heartwarming Wrap." Those booklets usually cost $2 to $3 and there are five or six patterns in them, so that's not a bad deal.
This blanket is also on the cover of the booklet (albeit with the right amount of edging - I cut mine short because I hate to do edging!):http://www.leisurearts.com/crafts_needlework/item_detail.asp?item_num=75015&search=1#
I used Caron Simply Soft yarn because it's really soft and washable and easy to work with, but I think it's a little too heavy. My niece is due in January, so it's a good winter weight.