Check out my cakes.... i have several baby blankets. Try it on your tabletop. If your fondant is really soft and the folds don't look the way you want build up with some frosting. You don't want to let it dry too much before you put it on the cake or you will get elephant skin blanket!
On this one I had the basket come all the way to the top edge and you can totally see the top under the basket making it look sharp. I didn't like that. Next time it will stop a little short or I will do a thicker blanket. The folds and gathers are just from laying on the fondant, nothing underneath.
Same with this one although you can see how it piles around the puppy heads....tht is the only thing under the blanket.... Grass was piped after blanket was placed.