I'm currently knitting a baby blanket for my cousin's baby due to arrive in July. I have knitted two other baby blankets in the past for new babies and I love it as a gift because I feel it's one of those things the mommy will keep forever. I'm all for practical gifts too, but this is something that I love spending the time to make.
I did want a pattern that looked impressive, but was pretty simple to knit up so I wouldn't have to pay too much attention. So now I spend my afternoons and evenings counting stitches. It's a bit of a slow process, and often I find I'm making myself sit down to knit, but I know I'll be very happy when it's finished.
Almost halfway there!