Burp Cloth Tutorial - It would be great to embroider or applique a design on the fabric panel. Another idea is to use a soft, absorbent flannel as the middle panel. I'd finish the edges a bit differently too, but still a great tutorial.
Some great tips. In depth Sewing Tips for Beginners. Learn from the (many) mistakes I have made along the way. Here is a list of 10 things I wish I would have known from the beginning of my sewing journey that would have saved me a lot of money on fabric from trashed projects ;)