J.P.
You've gotten some great suggestions already. My daughter's blankie is one I made from fleece. I cut strips across the side and tied each strip in a simple knot. She loves rubbing the "fringe" edges. I would recommend making at least 2 so you can wash them. They don't age well, so you might even consider making a few. I will say, however, my daughter prefers her oldest blankies to her newer ones.
Good luck!
J.