1 yard of cotton gauze (I bought mine at Joanns but you can find them online too)
scissors or a rotary cutter and mat
Here's How It Works:
Trim your fabric to be a square. I found with a yard, you only need to do a little trimming. My rotary cutter makes straight lines, but you can do the same with scissors as well.
Once your fabric is trimmed, fold over the edges 1/4 inch, and then another 1/4 inch for your hem. I have a serger, so I just serged the edges and folded them over. Because the fabric is textured, try to use your iron as little as possible to preserve the feel of the fabric. You can pin your edges to help hold your seams in place if you like.
Now just sew around all four edges and you're done! As you can see from my picture below, my edges turned out a little wavy because of the stretch of the fabric. It still looks fine, though and the stretch in the fabric makes for easy swaddling.
Swaddle your baby up and there you have it!