At my daughters first Dr. Appointment (she was a week old) he pointed out that her breasts were a little enlarged, he said that was from my hormones. They didn't, nor do they now seem very large. They have gone down since her appointment, she is now a month old. It should go away with time.

Sometimes the baby's breasts can contain milk, which as the previous lady said is from the hormones, it does happen quite a lot.

My baby had that- my doctor said it was from my hormones- totally normal. Sometimes the little breasts have milk too, he said that is called "witches milk" but didn't say why.
I don't know though, my daughter is now 6 months old, I stpopped breastfeeding at 3 months, and she still looks a little"buxsome" to us.
I think it's just baby fat- she's pretty roly poly.