Quote - In the cloth room there are two values that control how close the cloth will be to the collision item. It may be enough to add the extra collision types to the simulation. for things like toes the normal collision mode may not work 100%.

 

Good call there.  Also check that you didn't enable ignoring hands/feet/head too.  Seems to be pointy parts like toes and knees mostly so checking poly to poly collisions may help.

Also. using a higher resolution mesh for the blanket will also help, more polys means more verts to bend at.