Monkeysprout, we don't know what is required yet, the CPSC has not issued exact quideline. Reading the latest on the labeling, it appears that whatever works for you is currently allowed. Obviously, since kids products range from jewelry, to booties, to blankets, toys, clothing and books to just name a few, a one size fits all label won't work.
Since you make each item personalized, then you know who each customer was, and the specific info on each item. Autograph each item with your shop name, and date. Keep a card file with each customer's name, and other info, and write down what you used to make the item, vendor and their batch info from a label, or attach their label to the card.
I don't think the label police are going to come after us, we are only making 1 or a few of each item. I think that you can work out a system if you don't worry about the "rules". The issue is tracking of supplies used if there is a problem in the "food chain" where lead is found.