It is called "Ruffles and Dots" and is made with a bobble stitch. Isn't it fantastic?? I found it at Rachel's blog here.
I am definitely going to be making one (or more) of these as a baby gift.
You should definitely check out Rachel's blog... she crochets and sews (my two favorite things), has an adorable baby boy, and I love her haircut!!
Right now she is doing a CAL featuring a really cute cowl pattern from Lion Brand... go check it out.