Here's a cozy, familiar story done up just right by an Australian with a gift for capturing the universal dramas in the preschool world. Her blanket's color causes amiable strangers to assume that baby Julia is a boy, but her parents know the color is fine. As she grows older, the blanket goes everywhere, diminishing in size (""some went up the vacuum cleaner. . .a sizable piece was lost under the lawnmower"") and also in color, till she goes off to school with a tiny, pink bit--and loses it the first day, "". . .but now that she was growing up she hardly missed it."" Graham's seriocomic pen-and-watercolor illustrations are full of life.