First thing I bought and personalized with her name were three hooded bath towels at Walmart. I have an embroidery machine and embroidered her name on the hood of each.
My friend has an older daughter named Jesse, so I had to embroider a little onsie for the baby with "Jesse's little sister"
I just sewed the elastic (13" for a newborn) together on the ends. Then sewed the flower on by hand, and backed it with a little felt cutout so it is soft against the baby's head. No glue involved - which I like. I packaged them up in Papertrey's new Boutique Accessory dies and stamps, and put them in a little $5 stamp set clear envelope.