Oooh, this is a hard one. We use paper towels...A LOT. We use them as napkins, to clean up spills, to dry our hands, to clean up Sweet P and to make Sweet P's wipes. But I do have a solution. And I'm slowly moving toward doing this and getting rid of paper towels except for what we use for wipes.
My friend Sarah told me about these Eco Friendly Cleaning Cloths. And they didn't disappoint. You can buy them online from the company or Amazon, but the best place to get them is at Costco. You can pick up a pack of 10 for around $8. Definitely beats the online prices, but if you don't have a Costco...I still think they're worth it. They are made without chemicals and made out of 99% recycled materials. I like them because they are soft and thick so they clean up spills and Sweet P's face really well! You can machine wash them with towels or other rags, but I do not recommend drying them. Keeping them out of the dryer keeps them soft. They even work great as a napkin.
So go pick some up and lay off the paper towels why don'tcha?