Was wondering how this turned out! I actually made a baby blanket years ago with a combo of big fabric yo-yo's with a crocheted edging. They turned out like granny squares, sort of, but it made a really cute blanket. That was pre picture of all project days so I don't have a picture.
Or try cotton, like Sugar and Cream with two strands on a big hook. I think there are patterns (free) on the net as well as patterns in both the One Skein book and the Mason Dixon book. You could also string together potholder loops...like the ones used with those square looms...another Mason Dixon idea. They knitted theirs but they could easily be crocheted. Google and you'll find pictures of these online.