What a lot of good ideas. Thank you all for your help.
And as for the people saying there is no point in knitting, that could apply to a lot of things and certainly most crafts. I haven't found wool to be very expensive for tiny baby garments. Most of the things I have knitted have been machine washable, although I did do a little pink cardigan in pure wool that will need hand washing. My son really seems to appreciate that they are an expression of love for my gorgeous granddaughter. I am also in the position of a lot of people on here that the baby is my son's and so the other grandmother spends more time with them, and showers her with gifts. I refuse to get in a bidding war, but other grandmother doesn't knit, so this is the one thing I can do that no one else does! I have been careful not to overdo it and have just done 4 little cardigans in the first sizes, and a blanket. I'm not working on a couple of items for autumn/ winter. When my children were babies my Mum knitted a coat, hat and gloves which all three of my children wore. I could guarantee that if I took them out in the pram in that outfit that old ladies would coo over the baby, so I am all in favour of hand knitted items.