Bernat Softee baby yarn is ALWAYS my choice for knitting baby clothes. I don't normally like acrylic threads, but it's good for busy moms to be able to wash and dry blankets/clothes without worrying about shrinkage. This yarn is very soft, the color range is great, and it washes and dries beautifully. This is the only baby yarn I use and I have been knitting for over 50 years.
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