ERRATA: The following rounds are missing from the pattern instructions.
Round 3 and Round 4: Knit around.

This versatile baby blanket can be knit with any weight yarn using the needles appropriate for that yarn.

Notes from designer, Genia Planck:

Edging suggestions:
You can add fringes or tassels or even pom-poms. Or, for those handy with a crochet hook, you can crochet a bit of a lace edge around.

Variations:
You can also knit in stripes, and on the even rows, throw in some purl stitches for a bit of texture. It also works well with a variegated yarn.