I made a baby gift set for a friend a couple months ago. A flannel blanket with bias binding around the edge and a diaper clutch. (Clutch pattern in the works!) I had planned on adding the baby's name to the gift for her shower, but they were having an extremely hard time deciding on a boy's name. I gave her the gift with the stipulation that they would give it back to me when the name was set in stone so that I could personalize it.
Well, the baby came and the name is set in stone on the birth certificate, so I guess it's ok to go ahead and put AIDEN's name on everything! I used a permanent ink pad to stamp the name and ferris wheel onto the fabric. Before you try this, I'd suggest doing a test run on your fabric with your ink pad. A few of my stamp pads washed out even though they said they were permanent.
To test: stamp on fabric, heat set, then hand wash with a bit of dish soap.
I hear Hobby Lobby is now selling fabric ink stamp pads... Have to check them out!