Bernat Softee Baby Yarn, and Bernat Baby coordinates would be some pretty and soft choices. I would have never picked either of them I thought they were too old fashioned looking. But a friend made several baby blankets for Grace out of each of these and they turned out gorgeous!
There are lots of choices. Something I’ve noticed is to touch the actual skien you want to purchase. In one brand of yarn I buy the varigated is always scratchy and the plain colors are softer. In another brand its the opposite!
Let us know how it goes Tara! I cant wait to see what you find!