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Name Baby Ull
Note that on Viking Garn’s homepage they recommend needle size 3mm, though on the label they recommend needle size 2.5mm.
This yarn is not only good for baby items but also for any item needing a fingering weight yarn.
Some pattern ideas:
Finnish Baby Socks (Train Socks) by Kerttu Latvala
Sweet Baby Cap by Gro
Little sister's dress (Kjole til... by Tora Frøseth Design
Endpaper Mitts by Eunny Jang
Turn A Square by Jared Flood
Baby Surprise Jacket by Elizabeth Zimmermann
wurm by katharina nopp
Saartje's Bootees by Saartje de Bruijn
More pattern ideas on Ravelry.