Gosh, I just love traditional baby stuff. I'm all for the silver and funky colours and rainbows that we're putting babies in now, but I always feel like they look gorgeous in delicately hand knitted lacy things with motifs on them. Every one of you should buy this pattern and knit it for babies. I have decreed it thus.
This pattern has been sampled in King Cole Big Value Baby 4ply, and you'll need 3.25 mm and 2.75 mm straight needles, along with buttons for the cardigan and a ribbon for the bonnet.