I've discovered a Tuscaloosa mom who makes kids clothes out of her home and also sells online. www.thepattonpatch.com
They are super cute! She does appliqued and monogram t-shirts, sweatshirts, onesies, jon jons and other stuff and her prices are pretty reasonable. If you already have something you want appliqued with a monogram or name she only charges $10. (ie, I just brought her a bunch of t-shirts I got cheap at Wal-Mart.)
Just thought I'd post! Here is a picture of Kennedy today in her new shirt and pants from this website:

We also got this appliqued/monogrammed on a red t-shirt for a friend's christmas gift:
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Re: PSA: More cute kids clothes
you're evil. pure evil.
I'm sure I'll go look at her stuff tonight!!! LOL