I finished Isabelle's hat! I ended up making a simple hat in Bernat Soft Baby yarn, in a pretty pink, and added the cute curlies on top. I also put a reverse single crochet edging on the rim.
The booties I started (i made just one) look like they will fit a 2 year old, and no matter what size hook I tried to use, I couldn't make them smaller. I'll have to talk to Grandma about this and see what she can tell me, other than my stitches are too loose.
I gave up and made the little baby poncho, in Red Heart baby, multi-color yarn, and added a shell edging and curly tie made from the pink yarn to match her hat.