Any suggestions on what I can make him?

Congratulations! Sounds like you've had great suggestions! *4u!
Jacqueline

You could make a cute little bib from a freebie design at this site: http://www.swakembroidery.com/fre...

There's one on there that says "My Daddy, My Hero" which would be perfect for him!

Oh, what branch of service? My late husband was a Marine, he loved it when I made Marine stuff for him! I do really really like Jerrilyn's idea of "Made in the USA" on a picture of her on a shirt, that would be soooo cute. Hugs, Marji

Try this site. Lots of freebies, scroll through, there are a lot of military designs.
Good luck

You could do a photo transfer of her and embroider, "made in the U.S.A." underneath it.;)

How about a bookmark - best daddy - I love Daddy - or a shirt - with best the same quotes or New Daddy. *4U

Maybe a shirt saying... "DADDY'S GIRL" then a cute little picture of a sweet Angel or a little bug or something? Also, CONGRATS on the little angel...
Sam :)