I think the cute bird flannel was from Hobby Lobby (mmm, maybe Hancocks....) This is how I made the blanket:
After turning and slip stitching the opening closed I ironed the blanket and marked small dots every centimeter along the edge of the blanket. Then using the marks I made I swiped the idea from You Go Girl and did a blanket stitch around the blanket.
Next I chain stitched around the blanket- putting two stitches between each blanket stitch. Then I made a very simple scallop by making a slip stitch, three double stitches and then beginning again with a slip stitch.
Would a diagram help?