My daughter made some really nice potholders last Christmas... and the neat thing is... she made them out of old clothes! They are much larger than regular potholders.
She used and old sweater for the padding inside, a blue knit for one side (it also had a diamond pattern woven in... she then repeated the diamond pattern in the quilting), and two colors of fine wale corduroy... an olive green, and a gold.. I think she used old corduroy pants for that... they are about 8" square.
For the baby, I used to make cloth bibs out of cute finger towels... you cut a hole about 6" at one end, use t-shirt ribbing (like for the collar of a t-shirt) to sew in the hole... very easy to pull over a baby's neck.
http://www.martawrites.com/2010/09/how-to-make-towel-bib....
I've made coasters, too... very quick and easy, and cute! (for adults)...
Somewhere I have a link for travel items... can't find it in my bookmarks, though.. they were cute! making bright ID tags for bags, makes finding them on a baggage carousel easier. Oh! Here it is!
http://www.studiokatdesigns.com/freepatterns.htm
If you have family members that travel, these could be cute.....
Have fun! Just google handmade gifts... so easy!
ETA... just found a link with LOTS of ideas!
http://sewmamasew.com/blog2/2010/12/the-ultimate-handmade...