Minky is a very soft plush fabric made of polyester that is great for baby blankets, etc. Minky Dot is Minky with raised "dots" that give the fabric a nice texture.
I use Minky and Minky Dot for the baby blankets I sell on Etsy (
http://modernjax.etsy.com). It can be difficult to work with -- the cut edges shed quite a bit and you have ti pin it well before sewing because it stretches like crazy. I have seen quilts that include Minky but I am not brave enough to try that!
I buy most of my Minky from
http://www.minkydelight.com/. They have an awesome selection and I have never been disappointed. They also sell "short cuts" -- you can sometimes get a really good deal.
I have also bought Minky at JoAnn Fabrics. Their color selection is drastically less than the online stores, but they run specials -- right now it is 50% off!
Enjoy!