I received a children’s book in 1995/1996 in anticipation of my little brother. We lived in Gardner, Massachusetts at the time (central MA). The book had beautiful illustrations (something about Monique Felix’s illustrations for The Velveteen Rabbit reminds me of it), and was about a little girl finding out she was going to have a little brother and not being excited about it. She wondered if she could trade it for a dog. She also ate an egg out of an egg cup at some point in the story. I believe there was something about her getting a new coat as well, either peacoat or cape-style. The style of the book in my memory makes me think it was not necessarily American, nor necessarily published in that time period (egg cups?!).
Found it! The book is SHARING by Nanette Newman.