I grew up with 7 siblings (yes I know, crazy right?) and my mother made us all hooded towels using this method. So of coarse when I had a baby my mom made one for my daughter as well. I finally got around to making one for my 2 month old son the other day, so I thought I would show you the very simple step by step as I did it.
-1 large bath towel
-1 small washcloth
Take your washcloth and fold it in half. Now take the two top points and fold them down as shown. Using your sewing machine stitch the folded triangle down through one layer of the towel.
Flip the washcloth over (the triangles will be on the back). Lay the bath towel out horizontally. Line the bottom middle of the washcloth up with the top middle of the towel. Simply stitch the back bottom edge of the washcloth to the top of the towel.
That's it! I love these baby hooded towels because they fit for a long time and the towel is nice and wide to wrap your baby up in. Enjoy!