I ended up buying two nice wooden frames (4x4) painted a cream color and attaching the frames with a very "girly" ribbon. Similar to this:
It turned out nicely. (And my mom and I went in together for the gift...just over $10 each. I think that's reasonable for someone you don't know very well.)
Today I was looking for a craft that Cole would enjoy (I'm trying hard to get creative with our activities together...and my time to myself) and found this on Martha Stewart.
He would LOVE playing with those in the bathtub. AND...and they could make really cute gifts as a set of washcloths and some nice baby body wash. Hmmmm.