You need a few simple materials.
1 washcloth (they didn't have any washcloths in the color I needed, so I used hand towels cut in half)
material for initial (if you want)
Heat Bond (if you want)
sewing machine and thread (duh)
If you are using hand towels (like I had to), start by cutting them in half.
Fold your hood piece in half hot dog style (if you are using a washcloth, you can fold it either way, just determine where you want your stripes on your hood) with right sides together. Sew one of the short ends closed.
Fold so right sides are facing out.
Find the middle of both the long side of the towel and the bottom side of the hood. Match the middles and pin right sides together.
Sew along the bottom of the hood to attach it to the towel. Congratulations, you made a hooded towel!
I like to add initial appliques to mine. To do this, I simple attach fabric to the towel with Heat Bond.
You can stop here, but I like the finished look you get when you sew around the appliques with a zig-zag stitch.
Now, just make a couple more and you have perfect gifts for a sweet little newborn boy and his two big brothers.