Here are some pictures of a gift I made recently for a friend's baby shower. I LOVED it and it was so easy I know i'll be doing this again soon for my own daughter. I also included pictures of the card I made for her too. (Excuse the cheesy joke- they are keeping the gender of their baby a secret!)
If you want to do this too- all you really need is heat and bond paper (buy at a sewing supply store), fabric, scissors, onesies, and an iron.