I've been working on preemie hats for the NICUU here using the Jelli Beenz yarn. It comes in lots of pretty colors. I'm using #6029, a baby pink variegated. Pictures here.
Project is also posted on Ravelry with pattern and needle details here.
If you are interested in knitting for your local hospital nursery or NICUU and need ideas/patterns, I'll be glad to be of help. These little guys need baby hats all year long, and these little hats are easy-peasy, especially with the 12" and 9" circular needles (Addi Turbo 12" and HiYa HiYa 9" are both great).