Not sure why the baby on the front looks grumpy in such a delectable set of knitwear! Lace and babies always go well together. Lace and stripes often goes together. Stripes and babies is a win. So, I mean, that's a triple win pattern right there. Add that to the fact that you get two cardigans (one lace, one solid), trousers, two hats and a blanket in one pattern and you've got yourself about a million wins in one pattern.*
There are so many yarns we could recommend for this pattern but I'm leaning towards the new King Cole Cutie Pie DK for some gorgeous self striping action. The Cherish / Cherished DK would also work very well. You'll need 3.75mm and 4mm needles, between four and six buttons for each cardigan (check the second photo for more info) and some elastic for the trousers.
*This is an approximation - I can't count to a million. Can you?...