Here's my progress on my baby blanket so far:
I am using the straight blue loom and knitting a flat panel on all pegs + 1 corner peg, using 1 over 2 stockinette stitches, and Bernat Baby Coordinates Baby Pink & White yarn. I created the alternating color blanket border the same method I used for the baby hat: wrap odd pegs with pink yarn, even pegs with white. So that the yarn doesn't get caught in little baby fingers easily I will sew a satin ribbon on the back, and this should also help control the curl that stockinette stitches always create. Using the pattern below created on graph paper, and using a pencil to mark the top of the pegs for each row of the pattern, I'm knitting off 5 repetitions of the bobble pattern, though if I need to make the blanket longer I will knit off more.
So far I have completed about 6 hours of work; marking the pegs and creating the bobble pattern takes longer to complete the project, as you might imagine. I have a few other ideas for how I might create this differently next time, but this is my first attempt and it is coming along fine. I hope to have it completed by the second week of June unless I get more time to work on it before then.
Here's a closeup of the bobble pattern; it was hard to get the lighting right for the shot, so I darkened the photo a bit:
I will have some better shots of the bobble stitches once the blanket is finished.