I made this blanket for my son. I wanted a "toddler sized" blanket for him since he's not a baby anymore :( I cut the flannel fabric to 45"x60", used quit batting inbetween the layers, and stitched a few lines along the length of the blanket to hold the batting in place better. The letters run down the long side so that they are sideways when using the blanket. I didn't like the look of placing them at the top or bottom.
I cut the letters for his name on freezer paper using my cricut and ironed them to the fabric to cut out the letters. You can cut fabric with your cricut, but this one was a little stretchy and wouldn't cut without messing up, so I opted for the freezer paper option and then removed the paper before stitching it to the blanket.
Then I finished it off with red blanket binding.