So I showed a picture of a yellow crocheted baby cocoon that I made up on a whim with the batch of baby projects I was doing. Well, I have yet to go back and figure out exactly what I want to do with the crochet pattern - it's in my head, but it's basic and I know I wanted to make some adjustments to it. But, I did, however, create a knit pattern. I think I really like this one - I even wrote it down.
Since I do not have a baby to show in the lovely cocoon - and likely won't have for at least another 6-7 weeks (if history is any indication) for this post you will see just a picture of the cocoon itself. But, for anyone interested, I've also included the pattern. (Seeing that free baby cocoon patterns are very, very, very rare and especially cute ones). Anyone may use it for personal use only, please be considerate and do not sell it or anything you make from it. But do enjoy it!

This is a
summer style cocoon (made for hot weather and thus should not be considered warm enough for cooler and cold weather.... I will likely make adjustments to the pattern for the bulkier and warmer yarns later in the year). I also did this with simplicity in mind. No fancy stitches here.
I used Bernat Baby Jacquards 3.5 oz sken. It would appear that you should be able to get 2 of these cocoons from one sken. I also used size 11 (US) needles - single strand.
Finished size (newborn - 3 months): relaxed: 6"W X 16"L; Stretched 8"W X 19.5"L
Cast on 68 st.
St st for 2 rows
2x2 Rib for 2 rows
Pattern #1: 2x2 Rib across 1 row, 2x2 Rib across leaving (8,16,32) unworked, 2x2 Rib back across worked stitches, 2x2 Rib across all (including unworked stitiches). (Repeat this for the 8, 16 and 32 unworked stitches - only once for each number of stitches left)
Pattern #2: Follow beginning of Pattern #1 leaving 56 unworked and working back across. Now work back down just the 12 stitches one more time (continuing to leave the 56 unworked) and 2x2 Rib back across. Now 2x2 Rib across all stitches (including the 56 unworked).
Pattern #3: St st for 4 rows, 2x2 Rib for 10 rows (Repeat one more time)
St st for 4 rows.
Work Pattern #2.
Work Pattern #1 only unworked stitches follow this order (32, 16, 8).
2x2 Rib for 2 rows
St st for 2 rows
Loosely bind off.
Finishing: Wrap cocoon so the rib stripes go horizontally. This means the shorter end will line up with itself and the wider end will line up with itself. (Match up rib markings to ensure cocoon is wrapped evenly). Make sure the binded edge is underneath the beginning knit edge. Turn cocoon to wrong side. Gently roll beginning knit edge, right side to itself, about 1/4". Hold tightly to the binded edge. Starting 12 stitches (or 3 Rib sets) down from the top (the wide end) closely whip stitch together (don't pull stitches too tightly). This will give the appearance of the "ruffled" over lay on top on right side when done.
Turn cocoon right side out. Weave a piece of yarn carefully through the bottom edge of the cocoon all the way around. Gently tug the yarn to create a gather. Gather as much as you like - I choose to gather gently and then to carefully stitch the opening closed - tucking yarn ends inside and then tying off. You may also just gather, tuck in and tie off. It's important to gather from the right side so as to have the "bottom gathering ruffle" present.
You're done! Turn the top two points down - to keep away from baby's face - these can be stitched down, but would prohibit some of the stretch if you do.