Mommies don't care if they know what they're babies are getting them for b-day and Christmas gifts (no matter what your age). Mommies are full of love. That's what makes them Mommies.
Tell her straight that you're already making her washcloths for Christmas and she'll just have to wait until then. She'll laugh and say "Okay, darling." Mom was just trying to give you a cheap gift idea. I love Moms like that. Mine's like that too. In fact, she told me the other day that taking up knitting was one of the smartest thing I ever did because my gifts are more special because I made them myself. Feels like elementary school and horrible clay ashtrays all over again!! :roflhard: