Last year when I was expecting I made this blanket:
It is the Tweed Baby Blanket by the famous Jared Flood. I chose Berroco Ultra Alpaca Light because of its softness even though I knew it would pill. The softer the yarn, the more it tends to pill... But you know, for a newborn baby it has to be soft. You can see by the photos that it has been used a lot.
The pattern has now been updated with a version with three colors instead of two, and I'm very much tempted to knit this three colored version. Maybe not as a baby blanket but just as a cozy knitted piece for the sofa.