The December washcloth was knitted in the car on family visits in the week after Christmas. It's the fall-back pattern of the Ball Band Dishcloth (ravelry link) from Mason-Dixon Knitting, using Denim Sugar 'n Cream and a multi-color remnant (also Sugar 'n Cream) whose name I've forgotten.
I knit one washcloth every month for the whole of 2011, and in two months I knit two cloths. Christmas preparation was much less stressful with these little gifts ready to go, but I feel like I'm still not quite where I'd like to be. Two of the washcloths ended up as hostess gifts back in the summer, and one was sent as a prize in the Knitters' Brewing Company's Football Knitting contest (the store is on a break this week, so here's a link to their Ravelry group, too). I figure these are also good uses for my knitted washcloths, and ones I expect to run into again.
So for 2012 I am going to continue knitting washcloths, and increase my goal slightly. For this year, in addition to knitting one each month, I plan to knit one extra washcloth per quarter. So by the end of March I should have four washcloths, eight by the end of June, etc. I think 16 washcloths a year will be a good supply for the assorted little gifts I'd like to give.