Hooray - we have a new baby in our extended family! :) We've bought one of those musical teddies (you pull the cord on this one and it plays "La vie en rose") but we wanted to do something a little bit different too, so DD7 and I have just made a 'Nappy Cake':
First of all, roll up the (clean) nappies and secure with elastic bands. You could use pink hair elastics, if it's a girl.
You'll need two pairs of hands for the next part. Take a plate or round tray and make the first layer of 'cake'. Put a large elastic band around these, or tie with string. Then add as many layers as you like, we did three.
Add a few small gift items. We put in a bath thermometer, cream, talc, little book, dummy and a pink rubber duck. Now you take ribbon or crepe paper and tie it round each layer (to hide the rubber bands).
Cover the whole thing with cellophane, top with a (pink) bow and - hey presto - a gift fit for a little princess! ;)