Here are some pictures of the new baby towels that I have made. The towels are approximately 31" x 31" finished. I also make my own binding to give them a more handmade feel.
There is a tutorial made by Break It Down Design - which is basically exactly how I make these towels (except I had sew the binding closed and I made a pattern for the hood): http://www.breakitdowndesign.com/chapter_2.htm
I love them all. I actually made another one, but sold it to a friend.