We used these bath wraps from PBK maybe 8 or 10 times but DD is just too big for them now. These are perfect for newborns up to about 9 months. These retail for just under $30 each. Asking $10 shipped per towel. If you buy both, $18 shipped.

http://www.potterybarnkids.com/products/emerson-nursery-wrap/?pkey=bbath-baby-wraps&