I've wet-finished the baby blanket. I just put it in the washing machine like I normally do my laundry, and then in the dryer on cotton setting.
The top photo is what it looked like before it went into the wash.
And the bottom photo is after. The yarns really migrated and fluffed up, making it a much nicer fabric, and better contrast between the light and dark areas in the design.
Overall, there was 8% shrinkage in the length, and 9% in the width.
I'll post a final photo of the whole blanket after I'm done hemming and pressing...