The most recent baby shower gift I gave was a purchased item from a gift registry. To add a personal touch, I knitted a pacifier clip and used it as a package topper.
Free Pattern: Flower Pacifier Clip by Susan B. Anderson
Yarn: Tahki Cotton Classic
Needles: US 3 DPNs
The challenge of this project for most people is the finishing. Most of the parts are knitted seperately then sewn together. There are five petals, one center, two leaves and one cord. I found the construction of the petals interesting and clever--bascially, you knit a tube on two needles. Knitting the center of the flower was the most fiddly part for me due to the small number of stitches that must be knit in the round. Even with all the parts to sew together though, I was able to finish this project in one afternoon. I think that's a reasonable amount of time for a gift this cute.