This reminds me of the lovely waffle sweaters my Nan used to knit for us when we were very small. It must have been a very long time ago, I can remember the stitch but I can't remember the colours. Hers were definitely knitted which I must admit gave the garments a lovely drape.
I could knit a waffle stitch sweater myself now but I much prefer to crochet and this is a similar effect, using raised trebles. The pattern is incredibly simply to follow, unlike the mess I got into trying to follow some of the other baby patterns!
I've started another, this time the hooded jacket version, and in a much more girly yarn. It's white with flecks of pastel shades. It's been a lesson in how different yarn looks once worked up though. It looks so much more subtle on the ball than in the fabric.