Cut 1/2 yard from the longer piece. Divide it into 4 equal strips. Sew two strips together at one short end. Repeat with the other two short strips.
MAKE THE RUFFLES
Take one of the long strips and fold both short edges over 1/4″ and press in place. (This will be hidden inside the ruffle piece when you fold it in half in the next step.)
Fold the long strip in half lengthwise.
Put a gathering stitch in the unfinished edge (non folded edge) of the long ruffle piece.
Pull the gathering string to create a ruffle. Gather until the ruffle piece matches the width of the main blanket piece.
Repeat with the other long strip, to make the ruffle for the other side of the blanket.
ATTACH THE RUFFLES TO THE BLANKET
Place one of the main blanket pieces on the floor, right side up.
Add the two ruffle pieces to the two short ends, with the raw edges lined up. Pin in place.
Add the other main blanket piece, wrong side up. Now you will have the two ruffle pieces sandwiched between the two main blanket pieces.
Sew all the way around the blanket, leaving one 6″ spot open to pull the blanket right side out.
Pull the blanket right side out, and close the opening with a narrow topstitch.
Notes
Pre-wash and dry the fabric before sewing. This helps preshrink the fabric so it won’t shrink weirdly after it has been sewn.
You can use coordinating fabric or the same fabric, depending on the look you are going for.