Hey, I just remembered that I can post this now!
Early in December I made a hooded toddler towel that Stephanie had ordered for Siena, the daughter of mutual friends.
Before making this towel I attended a huge craft show where someone was selling hooded towels like these. They had figured out a great way to fold them so that the hood was visible, so I stole that idea. Fold in half lengthwise, roll toward the center and place hood on top. Makes for a nice presentation.