(Oh, the color scheme comes from another baby, which is not ready yet, I'm in the process of making the sunbonnets for it).
Decorative stitch and binding:
I'm especially happy with the back, which is not the usual fabric, but the soft "baby" fabric that is so warm to touch. This is going to be a baptize gift as well, to a little boy this time. I know it's not blue, but why should we always respect the convention???
Oh, I forgot: the pattern is called "Disappearing Nine Patch", because it starts as a nine patch.
Then you cut it in four, straight through the middle, and rearrange it.
And than you sew them all back together again. Easy! And it offers endless possibilities. It is very likely you will see more of this pattern around here, because I really like it.