When my daughter was a baby, a friend gave her a hooded towel made from a regular bath towel and a hand towel. It was a favorite and is still used today. I have always wanted to make one, knowing it wouldn't be too hard. I finally did. And it really was not hard at all (I don't even sew in a straight line very well - so you know I mean it was not difficult).
These are thick and thirsty- like real towels. They are not the thin hooded towels for babies that soak up very little water. We loved it because you can really wrap the baby up in it.
Here are a few pictures of the one I made for a sweet little baby boy who is being adopted by a friend of ours:



Here are the links I used to make it:
http://www.inciid.org/cgi-brd/getmsg.pl/111/549
http://www.megadaisy.org/pics/hoodedtowel.jpg
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