I saw some baby mitts on a friend's baby registry a few months ago and thought - I could make nicer ones than those. So I started experimenting. I picked up some Bernat Satin yarn in blue. It is super soft and nicer than some of the "baby" yarns I've seen.
The first knitting pattern I made went as follows:
- Using size 8 needles, cast on 18 stitches.
- Work in Knit 1 Purl 1 ribbing for 4 rows.
- Work in stockinette for 10 rows.
- Decrease by 2 stitches at begin and end of row. (16 stitches)
- Purl the next row.
- Knit, K2tog* repeat to end of row. (11 stitches)
- Purl the next row.
- K2tog* repeat to end of row. (6 stitches)
- P2tog* repeat to end of row. (3 stitches)
- Pull yarn through the remaining stitches and weave seam together.
Here is what baby mitt pattern #1 looks like when finished:

They measure about 4 inches by 2 inches.
The second baby mitt pattern went as follows:
- With size 8 needles cast on 22 stitches.
- Work in Knit 1 Purl 1 ribbing for 5 rows.
- Work in stockinette for 8 rows.
- Decrease - K2tog* repeat
- Purl
- Decrease - K2tog* repeat
- Purl
- Decrease - K2tog* repeat
- Pull yarn through the remaining stitches and weave seam together.
Here is what baby mitt pattern #2 looks like when finished:

These are slightly wider than the first pattern (2.5 inches instead of 2 inches) and seem easier to slide on baby hands.
Both patterns seem to fit tiny hands well.