I also finished a little hat for baby Zach. The first one was kind of awful. I tried to do the Z with intarsia and it came out really lumpy and uneven. I might have tried to overlook that if it weren't for the fact that the hat almost fit my 3 year-old. Don't know what's happened to my knitting mojo since the shawl, but I think it has more to do with the fact that I haven't been able to sleep well lately.
Anyway, I think this hat is suitably cute for a newborn. It will get packed up with some nice kids music, some wonderful organic baby shampoo and lotion and sent off to Zach.
I have friends who had a baby 2 months premature. I think that little baby needs a hat. I just have to figure out how small to make it.