Wow - what lucky people to receive a gift from you. $300 would buy a pretty handsome gift.

How about a personalised quilt. You can get them made I think. If you find a quilting / sewing shop and ask them for contacts of someone to make one for you. I've luckily got a relative that can do quilting and has made my DD one but got the 'quilting' (i.e. stuffing part of it) done out-sourced because I think you need a large machine to do the job properly.

Hmmm, other ideas; put together a 'personalised pack' of some sort i.e. get some stickers made for the childs shoes, tupperware items, bags etc, a name plaque for it's bedroom, towels with it's name embroidered on it, cushion for the room, a jacket with it's name on it. (This was a gift I got from my parents when DD was a baby and I absolutely loved it).

Happy shopping.