Trellis
Yarn: Knit Picks Shine Worsted in Grass
Needles: Size 7
Pattern: Trellis, from Knitty

Standing!
I made the small body and the large sleeves (don't ask) and you can see in the pictures that BHS needed the sleeves rolled up. So, my recommendation would be to make the matching size sleeves and body. Duh.
This yarn is super soft, and only gets softer with machine washing. I made a Picovoli in this yarn, and pilling has been pretty minimal for me after several washings. I think this is a great yarn for baby clothes.
The buttons were purchased at The Point NYC and a close-up can be seen here on my Flickr account.
BHS says:

I am so stylish in my new sweater!
And also, pffffbbbttt.