My MIL is going to make these for the baby! Cannot wait! Also the little newsboy hat she is going to make for DS too! So that way they have matching hats!
http://www.ravelry.com/patterns/library/sock-monkey-baby-hat-2
http://www.ravelry.com/patterns/library/buy-my-papes-sir---newsboy-hat
and
http://knitprocro.com/baby-bear-hat/