I fashioned this applique from an old cashmere sweater that I felted (after it developed a number of moth holes, mind you). It's sooooo soft that I find I'm always touching it throughout the day. For that reason, I think one of these appliques would work great on a child's blanket.
The concept and images for this project are under my copyright. You may make the project for your own personal use but may not reproduce it to sell online or at craft fairs. If you wish to feature this project on your blog, please contact me for permission. Thanks!