I saw the idea for this over on Abby's blog here. I had this fabric from a swap in our neighborhood (didn't I say Free was my favorite word?). I have just one word of advice, if you make one of these, leave your stitch length a little longer. I had mine short and it perforated the wrapper, so when I turned the whole thing right side out, it ripped the crinkly part. I fixed it by sewing a couple times around the edge to catch it down better, and then I quilted a little flower in the center to keep it from shifting too much.
Then I threw three burp cloths together, and done, one perfectly coordinated shower gift. And since I already had the terry cloth (the white fabric on the back) as well as the ribbons- all it took was time. (there's that FREE word again ;P )