I saw this pattern online on the juicy bits blog back at Christmas time when I was looking for ornaments. There's a printable pattern at the link. I thought it would make a perfect tiny owl for a friend of mine's newborn. It's the right size for tiny hands to hold. It's only about 4 inches tall.
I didn't have any ric rac in the right color, so I did a few decorative stitches instead. I also embroidered the eyes on instead of using beads to make it safer for baby. Very cute. I just love owls.