Imitation is a form of flattery. Take it as this. If they know they have upset you they win.
2 blankets are better than none. Just add some notable details to yours. Kids remember all sorts of little details.
Teach embroidery 9r rudimentary stitching and have your kids personalize the blanket from you.
I would get mad then get even by not letting anyone take the wind out of my sails. Never stoop to anyone's level.

