Just wanted to add that if you are adding a batting layer be sure to check the package to make sure you have quilting lines that are close enough for the batting you choose.  Otherwise when the blanket is washed you will get wads of clumped up batting inside of it.

Hey SpaceCadet!

Houndog's instructions are terrific.  I've been thinking about your question and wanted to add my two cents.  I also prefer tearing plain weave fabrics, but do not try this with Satins, sateens or twills or you'll have a mess.

 If you want to add a polyfilling inside for puffiness, layer the washed and dried fabrics in the following order:  Side one fabric right side to the outside, then the filling, and Side two fabric with right side to the (other) outside.  Pin around the edges with the pins perpendicular to the sides so you can sew over them with less chance of breaking a needle.  I like to machine quilt in stripes about 8 inches apart and then again the other direction so you end up with "boxes" and that keeps the polyfill from shifting when you launder the blanket.  Pin, chalk or tape off the lines if you're not comfortable making freeform straight lines.

Finally, using 1/2 yd of extra fabric,cut strips on the bias using 3" wide cuts and sew them together to form a long length of bias trim long enough to finish off the outside edges.  Lay the bias strip right sides together against one side of the blanket edge and sew through all layers 1/2" allowance all the way around, pivoting at the corners.  Now fold in 1/2 inch on the outermost edge of the bias strip and press with a warm iron to keep the crease.  Turn blanket so that you can topstitch the folded edge along the other side of the blanket just covering the existing stitching line.  Ta, dah!!  and That's it.

Hope this helps.  (Flat felled and French seams aren't recommended here)

Dear SP4ce_Cadet

This is my favorite new baby gift.  I make mine with a print on the outside that is in line with their nursery theme or personality using a poly cotton fabric with a coordinating flannel on the inside.  I purchase 1&1/2 yds of 45" fabric, wash it, add fabric softner to the rinse and dry it on high so that all shrinkage is done.  I rip each end of each peice to insure they are even.  I then lay them on a flat surfac to make the edges even.  The new spray that make fabrics stick to each other is wonderful for this but is optional, pinning works too.  Sew all the wary around except leave about a 4-5" opening.  Trim the edges, and cut corner point down (this will give a more pointed and smooth corner) sometimes I use pinking sheers if it is an especially raveling fabric.   Turn right side out, smooth out fabric, whip stich the 4-5" opening and machine stich all the way around, pivoting on corners.  If your machine has decorative stich capability and you wan to invest in the thread this is an option for added detail.  The cool thing that mothers have told me about this blanket is that it is great for putting a softness against baby without getting lint on their cloths and it is large enough for them to use up to 4-5 years old.  I have even had mothers ask me to make them one in an older theme (cars and Dora) for kindergarden blankies for nap time.  You can embroidery there name on the corner for more indiviuality.  Good luck and congradulations on you baby!