My friend Elizabeth just posted something on her blog about diaper cakes. This is the one I made for a friend last year. Let me tell you, if you've never made one of these they are a *lot* of fun and not super difficult. You basically roll up each diaper and secure with a rubber band. Place them in a circle and secure the whole big circle with a big rubber band. You then cover that up with blankets, netting, ribbon, toys, whatever. And you can tuck toys, washcloths, lotions, etc in the sides. I had a pretty cake plate so I displayed the diaper cake on that. I decided to put a Care Bear on top but you can also leave room in the center of the diapers for a bottle or something like that. The best thing about this cake is that everything is functional!
There's lots of ways to create and decorate these. Just do a search on "diaper cake" and you'll find a ton of ideas!!