So the other scrap yarn project that I'm working on is a the Log Cabin Moderne baby blanket from Mason-Dixon Knitting. Which is not to say that I've actually read the pattern (I should do that some time), but I've adopted the concept as a way to use a bunch of odd skeins of baby blanket yarn.
Here we are at about a foot square. I've doubled some of the finer yarns to get a more consistent thickness. (I had intended for Woats to model it, but she wasn't in a mood to be photographed.)
All of these are skeins from yard sale box lots or boxes of yarn given to me or my mom. The few that had enough to do anything useful with have long since been used- a log cabin blanket in two colors last year, a baby sweater some years before that.
This isn't for anyone in particular at the moment- but it's a sure thing that if you knit a baby item, soon enough a baby will show up to claim it!