Blanket Buddy

This is one of the most requested things I've ever knit. All my new-mom friends love getting this at a baby shower. 

Pattern is written for 1 ball of OH MY yarn.
Size 8 and 6 needles
Supplies: tapestry needle, fiberfill

Abbr: 
Kfb: knit front and back of stitch
Pwise: purlwise
YO: yarn over

Knitting the body
With larger needles, cast on 1 stitch.
Rows 1-6: Kfb, knit to end of row. You now have 7 stitches
Row 7: K3, yo, knit to end of row. Repeat row 7 until you have 40 stitches.

Knit 2 rows - garter stitch.

Continuing the body
Next row: K2, K2tog, yo, K2tog, knit to end of row. Repeat this row until you have 28 sts.
Change to smaller needles.
Next row: *K2tog; repeat from *
Next row: *Kfb, repeat from *

Shaping the head
You will be working the front and back of the head at the same time by slipping the stitches for one and purling the stitches for the other. This forms a pocket for stuffing.
Row 1 *P1, slip 1 pwise, repeat from *
Repeat row 1 until head measures 3.5"

Knitting ears
*P3tog, return stitch to left needle, cast on 17 stitches. You now have 43 stitches.
P3tog, P15, turn, P14, P2tog, turn
P16, turn, P12, turn, P14 turn, P16, P2tog, turn
P18, turn, P16, P2tog, turn
Bind off 18 stitches.
Work slip 1, P1 to end of row
Turn work and repeat from * for second ear you now have 12 stitches.

Cut yarn leaving a 10" tail. Thread tail onto tapestry needle and draw through stitches 1,3,5,7,9, & 11. Turn work and draw through stitches 12,10,8,6,4,2. Slide stitches off needle. Stuff head with fiberfill. Draw needle through stitches again. Pull up snub and fasten off. Weave in ends.
You can also bind off using Kitchener Stitch.
Optional embroider eyes with scrap of yarn.