This next neighbor gift might take a bit more time and money than the previous two ideas but I still LOVE it. Grab some flour sack towels (or any other kitchen or hand towel) and spruce them up with some embroidery or a cute applique. Here are a few I made a while back with fabric scraps for wedding gifts.
(Yes, I do have a yellow oven. Jealous? Yeah, me neither.)
Here are a few great tutorials and ideas on different ways to embellish hand towels:

November 21, 2009 at 11:25 am
I love the 2nd one! so cute with the different fabrics! =]
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November 23, 2009 at 1:37 pm
I did towels and washcloths last year for neighbor gifts and they were a hit! I bought them at the “Day after Christmas Sales” the year previous, so they were dirt cheap. I just kept them in the boxes with my Christmas decor until I needed them. I attached this poem:
This Christmas you deserve the very best,
A present unlike all the rest!
I considered a new car or an exotic cruise…
But I decided on something you could really USE !
Finally, I found a gift you would admire.
I hope you enjoy your new washer and dryer!
Merry Christmas!
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