If you haven't felt the King Cole Yummy Chunky
then honestly you haven't lived - it is the softest, smooshiest, scrummiest yarn for a baby blanket that I've ever come across and I just love that, whilst they've kept the traditional baby colours they've also added into the mix some weird and unusual ones that keep it more interesting. You'll also need a bit of spare DK for the hanging cord.
The suggested needles are 5mm and 6mm straights
and some 3.25mms
for the DK bit.