We love our hooded towels from Kohl's.
They are on a HUGE sale right now: Jumping Beans Towels. There are frogs, princess, butterfly, sharks, lions. We also have a monster one, but I don't think it's available any longer.
***Baby #3: BFP Mother
I was wondering this too a while back. I am going to go look at Kohls now!!
I got two and there is a 20% off code: SMS6087
We have some great hooded towels from Pottery Barn Kids that were gifted to us. They are large enough to use on our 3.5 yr old too! I don't see them on the website currently. They're not the animal ones. We have green towels with polka dots and blue with stars. Really cute and great size!
If you're near a Pottery Barn Kids or PBK outlet, definitely worth calling to see if they have any. The quality exceeds the Jumping Bean towels by far!
Edit: Ok, I found them. Here's a link....they are pricey but they do go on sale occasionally and maybe the outlet would have some too! http://www.potterybarnkids.com/products/dot-star-bath-wraps/?pkey=dbath-wraps