Here are some photos of my finished Katja with matching hat, which is based on a pattern from Monkeysuits.
Both the hat and the halter were quick and fun to knit, and I look forward to making more of them for other friends who are expecting girls. I will definitely do both in the round next time though!

I purchased a pair of cotton pants from The Children's Place to complete the gift ensemble. Can't wait to present them to my friend!