STYLETHREAD -- LET'S TALK SHOP!

Is it a boy or girl?

how about a monogrammed baby blanket?

I think you are on the right track by thinking of getting something monogrammed.  I loved all of my monogrammed gifts, esp the useful ones.  A monogrammed blanket is always nice, but one of my favorite gifts is a cute little small tote bag that was monogrammed.  The tote bag is v. cute, floral and kind of slippery material so it can get wet.  It's a great bag to take when you just need a few things and don't want to take a big diaper bag, or for the beach or pool, etc.  I've seen the bag in a few baby boutiques.  I'll look for it online and post here if you're interested.  It's adorable and probably well within your price range.  IMHO this would be a little more practical than the silver cups etc. previously mentioned (although those are very sweet too!).  JMO.