Teagz, I haven't been waking DD, just letting her go. They need a lot of sleep at this age so I just take it as it comes. Although in saying that, during the day time if it's getting past 4ish hours or more since her feed I'll wake her, but during the night she can sleep as long as she wants.

And yes to the sensitive nipples especially on the towel! Ouch! I get that, but not with anything else like clothes/bra.