I want it to be very soft and fluffy
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They used textile machinesConditions in the Lowell mills were severe by modern American standardsEmployees worked from five am until seven pm, for an average 73 hours per week.[3][4] Each room usually had 80 women working at machines, with two male overseers managing the operationThe noise of the machines was described by one worker as something frightful and infernal, and although the rooms were hot, windows were often kept closed during the summer so that conditions for thread work remained optimalThe air, meanwhile, was filled with particles of thread and cloth.[7]They worked for 10-12 hours in deafening noise with little payMy addition, in those days nobody got breaksI found several articles about this using google.
What is the name of the yarn? If you type it into a search engine you may find stores that sell itWith that fiber content, try places like Michaels, AC Moore, Hobby Lobby, Joann's and HancockRed Heart, Lion Brand, and TLC all have soft, fluffy yarns that can work well for a baby blanketIf you really want it to be bulky weight that does limit the options but try for Light and Lofty which should fit the requirementsIf you can use a thinner yarn there will be more optionsJust avoid Homespun, it seems like it would be great to use but it looks shabby very quickly.