Don't buy into any franchise jobs that make you spend money to join. Pyramid scams run rampant in the home business catagory.
Consider taking in a few other kids as a babysitter/daycare. That way you can spend time with your baby. My best friend did this when she had her first child, and it worked out well for her. That way your main focus is on the kids, nothing is taking away from that.
Are you a good cook? You could plan menus, shop and cook up meals for people who have really busy lives but no time to cook. There are books available on this, and you could promote it by printing up flyers and taking them to places where people make lots of money....law offices, company executives, etc. Get a at home catering guide from your local library.
There is a book called "The 100 Best Home Based Businesses for Women", again, you can probably find it at the library. It will tell you the pros and cons to lots of good opportunities.
What did you do before you had the baby? Is it possible to do part time work for that company from home?
Finally, if you can't find a job that you can work from home, what about a job you can take your baby to? Like a day care center?
If you spend an hour a day (naptime) working on building up computer skills, studying graphic design, catering, or any other home based business, you could train yourself to be marketable and be home. See what is most needed in your community, and fill that need.
Good luck, and good for you staying home with your baby. That is the most important job you could ever take on.