I currently have a Nikon D40 and I think I'm ready to take it to the next step and get a better Camera and Lens. I would like to stick with Canon. My Budget is around $1000 not including the extra lens I would like to buy. So Far I had the Canon Rebel T2i in mind along with the Canon EF 85mm f/1.8 USM Lens.
What do you guys think?
Would you recommend anything better??
It will mostly be for all around type pictures and lots of portraits of my newborn.
.. Is there a big difference from the t2i to the 60d? 

