I joined Stitches with Style Washcloth knitalong. SWS is my local yarn store and I love it.
I made this with Plymouth Yarns Jeannee, which was really easy to knit with even though it did split a little. The pattern is here. I decided to do the two colored version so that the sheep would stand out and instead of using a bead for the eye, which I thought might hurt if you used the washcloth for its purpose, I duplicate stitched where I thought it should be.
The pattern is very interesting as you create it from the wrong side and, as if by magic, it appears on the right side.