I make signs. Find wood, slate, plastic, metal...paint the lettering on the sign. You can use stencils or paint markers if you're not good with hand painting it on.

Bluelou, Congrats on your new grandau! My first grand dau is Lily too, but we spell it like the flower. Enjoy her!

If you want to do indiv letters, put them in a frame or shadowbox type

If they're not overly large, you could put the wooden letters on a grapevine wreath which you've intertwined with faux ivy or other greenery. Maybe use her birth month flowers in the ivy then hot glue the letters in place.

Sal

You could use fabric paints and make a quilted wall hanging.
Or stencil the name to anything flat--wood, slate, a decorative plaque from a craft store, a shelf with pegs, canvas or paper and insert in a matted frame.

I use the Publisher program on my computer to design things like this so I can play with fonts. When I have the font, design and proportions to my liking, I print it out and use carbon paper to transfer it to my work surface and paint or sew away. I'm not terrific at just winging things and judging by eye, so this method ensures a more professional end product.

Have fun and post a picture when you're done.

When my grandaughter was born, I made a plaque for her room. I used a pattern for a cuddly, plump teddy bear-about 16"tall. Cut it out of 1/4" plywood, primed it and painted it white with pink bow on her head, rose paws & nose.
I also cut out balloon shapes-1 for each letter of her name. Painted each balloon in a different pastel color, then each letter of her name in a dark blue. I stapled a long,thin, satin ribbon to the back bottom of the balloons, then gathered them up & stapled the cluster in the bear's hand. Oh-I also painted a tshirt on her (short length) and put her last name across the front of the shirt. In the pink centers of the bear's feet-I put the date of her bith on one and the year on the other.

I have seen painted letters glued to a ribbon and then the ends of the ribbon are hung so only two hangers/nails are required