This song was originally a 1960s hit for an obscure British group called Foundations. It has been covered a few times after (by Donny Osmond for instance) but the best exercise by far is Alison Krauss' 1995 version on her album Now That I've Found You: A Collection. The song suits her wonderful voice perfectly and it gets my head in the heavenly clouds while listening to it. With the song, Alison Krauss won one of her many Grammy Awards in 1995.
Song writers John MacLeod and Tony Macaulay earn their credits for composing the smooth and subtle Baby, Now That I've Found You. The lyrics copyrights are with a record company called BMG Songs.