Step one: Use two same size panels of fabric (you can make a large blanket or a small burp cloth) and a bunch of ribbon cut to 4 inches, and I always seem to need more ribbon than I think I will.
Step two: Fold ribbons in half. Pin around the edge of the right side of one of the fabric panels (right side meaning the side of the fabric with the pattern on it or the side of the fabric that will be on the outside of the blanket). Pin ribbon with the fold facing the center of the fabric and the cut side of the ribbon overlapping the edge of the fabric by 1/2 inch.
Step 3: Place the two fabric panels together with the right sides facing each other and the ribbons sandwiched in between them. Sew around the edge leaving an opening (3" for a burp cloth and 5" for a blanket).
Step 4: Pull blanket right side out and smooth or iron flat. Now you can choose how much further to take this. You could just sew up the opening with a basic blanket stitch. Or, you can now sew along the outside edge with your machine, tucking in the cut edge of the opening. You could also stitch some designs in the middle of the blanket if you wish.
I like to use ribbons with different textures but I always use lots of silky ribbons because they are the ones that babies love to suck on the most. I also like to add a note when I give this blanket that it is a play blanket and not a crib blanket because I worry about little fingers getting tangled in the ribbons and baby getting wrapped and smothered in the blanket. But I'm just paranoid like that.
As for all the sweet questions.... no, this blanket was not made for the bump in my belly =) I made this way before I had even decided to try again. And, do I have any clue as to what I'm having? Well I will get a second ultrasound at the beginning of February that will tell me. I'm leaning towards a boy... but I've never been right before so I'm not making any bets.