Here’s the egg-to-bluebird and nest from Itty-Bitty Toys:

My little girlie — shown above playing with it in her jammies the morning after I finished it — loved it.  She especially liked the nest and how the edge went “up and down.”  That picot edge was optional and I almost ditched it after my first try didn’t come out so well.  But I’m glad I gave it a second try since she noticed it!  The beak is a little large for my taste — the bluebird looks more like a duck.  If I were to knit this again, I’d fashion a smaller beak somehow.  I used Knit Picks Wool of the Andes and size 5 needles.