Well, here is what I've been working on for awhile (in between dish cloths!).
I used the 4 Corners dishcloth from http://1870pearl.typepad.com/myweblog/gratis-knitting-patterns.html and used size 13 circular knitting needles with 51 stitches to start.
I got the yarn from eBay from a seller's store called "The Spin Zone". She blends her yarn to make the most fabulous textures. You can't really tell from this picture, but this blanket is so soft! I've bought quite a bit of yarn from her, including her shawl kits. I have never been disappointed. This yarn is her baby blanket kit. She has a different pattern which she includes with it. I've made a couple of those, but wanted to try something different, so here it it! It did take a little more yarn than what came in the kit, but I just got another one! I plan to make a neck warmer and scarf from the leftovers.
So, now, I'm off to knit a BIGGER one!