One of my favorite items I've purchased from Etsy was "Grace Bear" from KnitStyle. I bought it for my daughter because it looked oh so soft and I thought she'd like it. When we got it, it was even better than I had imagined! It is SO soft, and the perfect size for my little one to carry around.
And, she loves it so much! She even sleeps with it and calls it her bear.
KnitStyle has a wonderful shop full of lovely things for babies and grownups too!