Really cute bibs and onsies. You can't have enough of them. A musical mobile is also a fun idea.

I wouldn't go with a mobile. Parents often decorate the nursery in a theme and buy a mobile to match.
Clothing is your(her) best bet. As Ellen said, onesies, you need lots. Burp towels are a good idea too. Sleepers, any other kind of clothing.

I always buy a cute outfit for 12-18 months out and you may be remembered for giving it to them when it comes to wear it. They will have so many onsies and bibs and spit towels from everybody. Where I am, Sears is a popular spot for reasonably priced cute outfits.

I would check to see if she is registered anywhere as that makes it much easier. An idea I have seen a lot lately is a children's book. I should have also added that the books were usually in addition to another gift such as clothing, blankets etc.

Maybe I'm the last person on earth who still takes the time to makes gifts, but a nice flannel quilt tied with embroidery floss is a Q&E project. You can also use checked gingham and a matching solid color for a tied quilt (it automatically comes with a grid to make it easy to tie). A church friend made an over-size blue/white gingham tied quilt for my son, and all the babies born in our small church at the time, and at 4-years old he was still using it as his "super hero" cape and it was a perfect size for a travel blanket in the car.

Here are some blanket ideas from Tip Nut - http://tipnut.com/baby-blankets-sewing/

-Grainlady

It's hard to buy clothing, not knowing how big the child will be in what season, but cute PJ's/slippers for when the child is older might be fun. In the early days, parents are just busy coping. Things settle down by the time Baby is 6 -18 mos.

A diaper genie.

a basket of little things: bib, baby feeding spoon, set of plastic keys/rattle, teething ring;

Baby monitor

Books

Everyone gives clothing in newborn sizes, but babies grow so fast they are sometimes only in that size for a week or two (ask me how I know!)

Clothing is good if you go with 3-6 month size.

Diapers are always appreciated!

My Hubby's co-workers threw him a diaper shower when I was pregnant with our first. We didn't buy diapers until she was 6 months old. Again, don't get newborn size but size 1 or 2.

I also always give a small mommy gift, usually some body wash, bath salts, a candle and some comfy socks (all can be purchased at Dollar Tree for a dollar) along with a card reminding mommy to pamper herself and relax in these last few weeks.

We have given a Tower of Time Handprints kit to several sets of new parents, and all of them have loved it. They're available from several different baby-specific web sites, but usually at a higher cost. I always used to order them from Baby Heirlooms online ($35, but don't know what the price might be now). The site is now known as Sunday's Child, and they still have a tab for the kits but there's no photo or price showing. OurBabyOurWorld.com has them for $25, but I don't know what they charge for shipping. Amazon's price is $28.11 with free shipping for Prime Members.

Also, the kits are available in all blue for boys, or all pink for girls (if the parents-to-be know and have revealed the baby's gender), or in the multi-pastels for the "unknowns."

Babies will outgrow any clothes you given them, and the handprint kits are something the parents will use once a year for five years, and they'll have them to treasure forever. And they'll think of the gift giver every year when they make a new handprint.

Can she crochet? One of the best gifts I saw was someone who gave two little crocheted baby blankets.

I also like to give gifts that aren't necessarily about the baby. Things like restaurant gift cards for places that deliver as they won't want to cook when they come home with the baby. Or house cleaning services.

Little things all gathered up in a basket would be nice:

a photocell night light

Bottle with looped center for a handle

Cup & bowl baby dish set

Baby socks

Photo album, scrap book

Book where you log babys first step, babys first words

A booklet, basket or a jar with some handmade coupons for free babysitting, a few offers to run errands, some 2 hour ones so mom can get some rest, or take a shower or go for a walk without rushing etc. One to help make dinner if she needs a hand. If she takes pictures maybe take some candid ones of the family to present at a later time. A book for the new baby and if it isn't the first child, a small token for the first child. I'm the BIG Sister/Brother t shirt or book. Cost is minimum, and the time you offer is priceless to a new parent.

My Granddaughter is having a shower in a couple of weeks and I got her a infant bottle set "The vent air", My other Granddaughter liked them. On the Walmart website they are about $21. I also got a toy, a couple of infant outfits and a teether. You can always get a basket and pack it with baby toiletries. A bath tub is always a good item.

Yeah, I was going to suggest crochet too...I usually get baby bouncer chairs the mothers always come back to say they were life savers. They're priced at all levels from 28.00 at Target to 100.00. You could also look at one of those bobo wraps to carry the baby with for less then 50.

I also buy 12-18 months clothes and socks in bigger sizes for the next year. I usually give a book too. Some of my kids favorites were "Mr. Brown Can Moo, Can You?" "Good Night Gorilla" and "How Do Dinosaurs...." by Jane Yolen. Theses books were fun and a little bit interactive.

A quick, easy and cheap alternative to the tied quilt, if your DGD isn't up to sewing is the fleece throw. The recycled pop bottle type of polyester fleece comes in all kinds of charming prints, is super easy to wash, hard to stain, and doesn't have to be hemmed or sewn at all. Just take two same sized squares (or any shape, really), cut the edges straight toward the middle, one inch wide by four inches long, to make fringes, then knot them together. You can make square knots, but it looks and lays better if you do the standard fringe knot, where you hold both pieces flat together, make a loop and pull the ends through. While tightening, push up to the top of the slits, up against the body of the blanket. Can't get any easier than that! People ooh and ahh, it's personal, handmade, cheap, useful and unique.

Another fun thing to buy or make is a book that's somewhere between a scrapbook, diary and sketchbook. Each page or double, with a different background, and a bit of story like "Today Jane introduced her toes to her new tooth," with space for a picture of baby with toes in mouth. It can be totally fiction, like a drawing of a rocket and a story about Jane taking her stuffy to Mars. The main idea is to make the pages fun and unique, and a place for those cute pictures that really don't fit in an ordinary baby record book.

If the parents are planning to make their own baby food, there are all kinds of nifty storage systems and prep aids that are well in the price range. High quality is important, though, and plastics should be avoided unless you're sure of the contents and maker.

Sometimes simple is good too. You can get a top quality, okay for babies, large stuffed animal for under $30.

A good bathtub , hooded baby towels and washcloths.

Clothing in six months and up.

Side snap white Carter's tee shirts. Every new mom I have gifted them to always loves them. A lot of new mothers today don't even know they exist except at the hospital. Same with gowns but now they come in sizes so be sure to buy the larger 6-12 months size.

Forget the cutsie shoes and booties that won't stay on. Babies these days go barefoot or wear socks until they walk.

Most mothers around here breastfeed so no bottles unless specifically asked for. Ditto on pacifiers. Many babies go straight from breast to cup.

Babies are bigger these days. Grandson wore 3 months for only two weeks. Neither of my grands wore newborn sizes at all.

A good parent's first aid book. There are many out there specifically for parents. First Aid For Parents and Children Fast is a good one.

Richard Scarry's Best Word Book Ever.

When my kids were babies I remember always having to purchase more crib sheets and mattress pads.....you need at least a couple of each not only for regular changing but also for those unexpected accidents...usually in the middle of the night. It's a boring gift but very useful and practical.

Little teething bibs (plastic on the underside so baby's clothes stay dry from the drool) ......they get icky pretty quickly. Target sells them 5 or six in a pack.

I've also filled a baby tub with tub tub toys.

Diapers and wipes, very expensive for the parents and appreciated. We've had a ton of babies on our unit lately. One mom of twins requested only diapers and wipes. I used to buy blankets for showers but after going to a few and seeing just how many they got I quit. Sometimes I buy baby books, outfits that aren't for newborns. The last one I went to I got a musical bear that reacted to the baby's cry or any other noise, and some little teething toy. All the way to work and while waiting for the shower to begin that thing drove me nuts. I offered to give the mom-to-be the receipt so she could exchange it for something else.

These days, lots of mothers like baby swaddles. They are inexpensive, so you could buy a few for $50.

My only suggestion is to make certain first the new mom isn't one of the increasing numbers of new moms using only organic cotton for clothing, sheets, etc., BPA free plastic or avoids plastic altogether, may not want items from China, etc.

A baby bathtub with soap, lotion, powder , etc. I know many expecting moms that have always enjoyed this type of gift. Not a lot of $ to make the tub attractive and interesting. Also, no $ spent on wrapping paper!

LOL! Great idea on the tub, but the wrapping paper thing depends on whom you're talking to. One of the men in my family thinks everything has to be wrapped, including a port-a-crib, box covered in matched seam paper with a big bow! He also has wrapped things like a toilet seat for one of the kids' bathrooms, and at least one large appliance. :)

I always knit or crochet a layette or blanket or both. She could always go in with another friend or two or three and pool their money to buy something more expensive than they would buy separately.

partymusic, I'm shocked at that mom-to-be's reaction. "how beautiful and thoughtful" would have sufficed. Her mother must have been really embarrassed!

http://www.babysavers.com/how-to-make-a-diaper-cake-diy-tutorials/Diaper cake tutorials
these are so cute! You can make them with lots of baby goods. I just searched on the pinterest for baby shower gift ideas.

GM, they both thought it was funny that I gave her the one thing she didn't need or want.

PM, are you still friends?

In response to the original question, how about a nice Baby Book. It's something I never bought for myself but it was fun to receive one and record baby's information…..when he/she first rolled over, sat up, walked, etc. I, too, crochet so generally crochet a baby blanket and maybe a baby toy.

Sorry for the tangent on this thread! GM, we were college friends and we work in the same business, so I have seen her occasionally through the years. HOWEVER, there was a family crisis in 2006 and I was looking to all my connections for a BIG favor -- she was the one who came through for me with flying colors! I seldom see her, but I consider her a true friend and I'll always love her. I just won't crochet anything for her again. :) :) :)

Thank you all so very much for the great suggestions and thoughts. I know my granddaughter will be very appreciative.

Buy larger size, one family I nannied she got alot of sleepers,etc. that her youngest son got at her baby shower and we kept changing him so he would actually wear and one was really long and yet when we said lets try it his toes are at the end and couldn't wear them long, they grow fast. What is really nice buy toddler clothes if you know if its a boy or girl. The baby equipement and such are extremely high prices, the car seats alone now a days are huge and like $300 and up and strollers and highchairs, all those things now. The best for parents to do is buy second high, join toy library where they sign for toys for however long its agreed and return it so kids get different toys. Instead buy books, that is so needed, read and be with the child in learning stage but enjoying it. I agree don't buy mobiles or things that parents decorate their babies rooms.

want to keep mom and baby happy? a $ gift cert at a more reasonable store than babies are us, ect...in fact i'd ask her where she shops for food, ect...they might already have a Costco or sams club card....and yes, you can get gift cards from them....

I disagree with the gift card. If they're trying to accumulate enough at a particular store for an expensive item, than that's a good way to contribute. Otherwise, better to give a homemade gift certificate that includes you fetching (or arranging delivery for) what's needed, than making them do the shopping.

One other thing. We try to avoid anything with feet. Unlike the footed sleepers for older kids that are roomy, DD and her friends find themselves cutting off the teeny tiny binding feet on infant wear today if they can't return the item. They don't stretch and the baby outgrows them long before they grow out of or even into the outfit. Maybe not true for unusually small infants but most newborns around our circle are larger babies at birth. The manufacturers haven't caught up with the larger birth weights of today yet.

Thanks to all of you for your thoughtfulness in making great suggestions. My granddaughter has learned a lot from your willingness to share.

I like to give "onesies" (undershirts that snap closed at the bottom). Not expensive, so I'll give three of them plus baby items like powder, babywash,etc.