In fact, there is a portion of the brain that seems to be dedicated to allowing for this facial recognition. Newborn babies are naturally attracted even to rough sketches of human faces. This specific recognition mechanism helps facilitate bonding between the mother and child, particularly during breastfeeding. A drawback to a newborn's vision is that the baby's eye muscles are both mildly weak and definitely uncoordinated. So, even though the vision may advanced enough to recognize shapes and contrasts, the muscles of the eye make it difficult to both focus and follow these objects.
Most parents are familiar with the cross-eyed look newborn babies can give.
However, this poor coordination of the eyes to move as one unit becomes less of an issue by three months of age. Mitch, studies are still being done to fully understand what a newborn can and can't see. But, undoubtedly, as we learn more, we will continue to be amazed at what these little creatures really can do. I hope this helps. You should not rely on this information as a substitute for personal medical attention, diagnosis or hands-on treatment.