Ridinghood sweater: anyone knit a 0-3 months or 3-6 months?

[lovewool]

We don't know what we're having, but I want to knit up a couple tiny girly sets in case we have a girl.

Has anyone made a smaller size than the smallest size written up? (6-12 months)

How did you do it? Knit on same size needles and reduced stitch counts or sized down your needles? And roughly how much yarn did it use? I am hoping to squeak by with 490 yards of semisolid, and only do the bind-offs, crochet lace edging on the hood, and icord in colorway.