Bumble Bee Designs from down under (yes, I mean Australia) are truly unique and give the traditional art of knitting and applique and fun and modern new twist. They are seriously worth the over seas shipping! Now, if you can tell me that you have ever seen booties this cute then you must send proof! I think these are just the most precious booties ever ($33 Australian Dollars)! I love that they make the train design for boys. Precious boy things are harder to find.
For a very sweet little girl in your life, you might consider this cupcake set ($90). The set is hand appliqued and about as adorable as it gets!
Green Little Beans (such a cute name!) is filled with wonderful options. I love their beautiful white blankets but at $80 each I think that they should be reserved for future nieces and nephews! My other favorites on this site are this hand crocheted bib and bootie set
in a beautiful and organic natural taupe yarn ($28)
Patty Cake Fashions has a nice little variety of crocheted booties ($20), sweater and hat sets and little bib shirts made from handkerchiefs ($35).