I couldn't belive I found Under the Canopy children's clothes at Macy's. Under the Canopy uses Organic Cotton. Soft? Holy Canoli, very soft.
Their online site only shows their adult collection of fashions, but if you have a Macy's near by, stop in and check out their kid's collection. They come on cute hangers too.
MO Z.'s keywords: Under The Canopy, Organic, Organic Clothing