I agree with the above that giftbaskets are cute...you can even get alot of lil baby stuff at the dollar store...They are great and come in handy...alot of new moms dont buy all the things they really need...bottles, nipples, lotion, powder, pacifiers, etc etc etc..the list is HUGE!!
OR just buy a huge bag of diapers..they will be going through so many diapers that the more the better
When my mom was pregnant with my last lil sister her favorite baby shower gift was actually something for herself..a book (what to expect when your expecting..very famous) a pair of extra fluffy extra soft bed slippers and some of that cooling leg cream for your legs and feet, she used to have me rub it on her feet...when you get pregnant your poor tootsies have to carry all that added weight and its not well proportioned if you know what i mean....
you can make something small look VERY cute..take the slippers and put the cream inside maybe put a packet of popcorn, maybe a candybar...and then put tissue paper and celophane it to make it look cute...
OR, make something!!! most craft stores have the patterns to make cute baby stuff, or even a cute picture frame so she can put a pic of her baby and her
Any present no matter bought or made as long as it comes from the heart it is the best...