Or embroider as normal and use this:
http://www.madeiramart.com/index.cfm?fuseaction=ezeebacking.detail&productgroup_id=344
I always use this on kids garments to prevent itching.
If you are going to be using something like this, make sure you are very aware of what thread type you are using.
Statistically speaking, more then likely just running poly, poly neon, but if you are running any type of other thread (particularly rayon), the pressure for pressing and applying heat maybe too much.
Which rayon is what you are in theory going to want to use on baby garments as it has a softer hand compared to poly, which comes in handy for baby's garments.
Poly is far more foregiving then rayon when it comes to something like this.
This might be a moot issue though, as I suspect more people just run poly, polyneon thread types versus rayon anymore. Just something that I would mention in case you do use different thread types. Or, if you use any speciality thread (although some I wouldn't use for a baby project period, some I wouldn't get near a heat source like this, but I use a lot of for kid projects) for the project. Which is probably why the caveat in the application instructions for temp/time.