Something from Nothing by Phoebe Gilman
Published by Scholastic Press

When Joseph was a baby, his grandfather made him a shimmering blue blanket adorned with the moon and stars. As the boy grows and the blanket wears out, the old tailor recycles it, in succession fashioning a jacket, a vest, a tie and, finally, a cloth-covered button. But when Joseph loses the button, even his grandfather cannot make something from nothing. With its judicious repetition and internal rhymes, this thoughtfully presented Jewish folktale will captivate readers right through the ending, in which the boy discovers one last incarnation for his beloved keepsake.