I've been busy knitting a hat/baby booties set for my Sister in Law and wanted the wrapping to be equally cute. I decided I was going to wrap the gift like a diaper. In my mind the idea was to have the gift completely wrapped from all sides in the shape of a diaper. But after experimenting with folding the fabric, I discovered I could make a diaper gift bag. It's really easy to make and requires only two items, a swaddling blanket and a safety pin. Simple directions below.
Open up the diaper shaped bag and place your gift inside, close back up. If you're concerned about your gift falling out, just secure the top of the bag with one or two clothes pins.