A few days ago I asked if anyone had ever tested machine washing and drying Cascade Baby Night Bollicine. I knitted a swatch of 11 x 8 and machine washed with cold water and dryed on knit/delicate. The results were great; however it now measures 10 1/2 by 7. There was no piling. The yarn softened up nicely. I used addi #6. Just thought I’d pass on my experiment.
Try repeating the washing and drying and see if it shrinks again. Since its for babywear (presumably) you can expect it to be washed and dried repeatedly.