A hooded baby towel is really easy to make.
You will need a large square of towelling and another square which is a quarter of that size - this is used to form the hood. You will also need 1" wide tape or ribbon to edge the towel, plus any lace, motifs or ribbon that you wish to use as trimming on the hood.
Fold the smaller square in half diagonally and stitch any trimmings to it that you want to use.
Place it on one corner of the larger square and stitch in place close to the edge.
Iron the edging in half lengthwise and then pin and tack the edging all the way around the towel. Stitch in place and there you have it!
I made mine with white towelling, white cotton edging and white lace trimming on the hood.
It cost me 60p for the cotton edging. The towel was from an unwanted "Tenerife" bath sheet and the lace was already in the sewing box!