Welcome to the forum!
A couple things I think you did well: the light is coming from a good direction and looks fairly soft and natural, there are catchlights in both eyes, baby is interacting with the camera and has an interesting expression.
Things to work on: I agree that it's too close, and the framing of the blanket against one side makes us feel a little claustrophobic...definitely not an emotion you want when looking at a baby! That's an easy fix, you just move back a little. I'd also move "up," which I know is a relative term here, but I mean move in the direction of top of the baby's head. If her eyes were looking up rather than down it would lessen the effect of the wrinkles under her eyes and lift her chin up so that we don't get that disembodied feel like she doesn't have a neck.
The light could also be improved...did you add a vignette in post? It seems like the brightest part is her nose, and I think it would look better if the brightest part was on her eyes.
It's a great start, though, keep at it!