ummmmm..

any statues (blue shoes/precious moment boy/a steel tinyteeny (his size) mug) with name, date of birth engraved? maybe those are not usable and not what you want..

not very catholic but.. grab light grey & light blue farbic (bandanas? or bandanas sizes) and sew them up into a little quilt.. you'll only need four bandanas for your little nephew.. I think it'd be so cute!

well, good luck on gift hunting!