I wanted it to be more of a dress-up dress, so I used this pattern again, so it's easy to get off and on. The only thing I did different was I added a reverse applique zig-zag at the bottom. I really wanted to avoid fringe, and I thought zig-zag would be a similar look but a lot easier. It was time-consuming, but I love the finished look. I did double rows of stitching because of how much this fabric might fray.
I had dreams of my girls playing together for pictures, but when it came time, {reality check} they both decided they wanted this spray bottle with water. This is the result of my photo shoot:
Once Moo was distracted with Diego, I did get one of Bug that's a good shot of the dress. It's exactly what I had in mind, and simple enough that even Daddy approves!
{UPDATE}We did get a better (no fighting) picture on our way to Thanksgiving dinner!
These are actually leftover pieces from a quilt top I made for 
A cute twist on a pillowcase dress for Moo - I didn't think that a tie around her neck was a great idea for her, so I love 
I don't have the budget for this gorgeous cashmere shirt for either of my girls, so here is my thrift store waffle shirt take on it. Sorry the picture quality is so bad, tonight after they went to bed was the only time I had with no kid on the sewing chair with me.
I used an existing shirt of Bug's for the pattern - I just cut it long, as I wanted this to be a tunic. Cut off the hem close to the seam, keeping it intact. This will become the neck ruffle. Cut the arms from the arms, and from the top of the arms, you will need two 4 x 3" squares for the pockets. It was easy to get all of the pieces from a woman's medium to make a 3T. You will also need a 1" piece for the hem, I just cut it right above where I cut them hem off. That somehow escaped the picture.
Right sides together, sew the shirt body and arms. I did a straight seam plus a zig-zag, as this will be worn by a very active toddler. Since I used the existing sleeve hem, I skipped hemming them. Also sew the neck together.
With right sides together, sew sleeves in. I use lots of pins.
It will now look something like this: At this point, I decided on pocket placement. (Sorry no picture) I did fold the pocket pieces down one inch and sew before I attached them, so the top had a clean line. I opted to just sew the pocket right on without turning it under, which will work for this fabric. I might sew the pockets on before I sew the body together next time. Just a thought.
Now for the ruffle... I wanted a little more ruffling on the front, and a little less on the back. To achieve this, I found the center of the ruffle and pinned it to the center of the shirt, and same with the back. I put the side seams from the hem more forward than the shoulder seam, so I had more fabric in front.
Instead of a gather stitch, I just pinned it in place and shoved it through the machine. I have found that my seam ripper is the perfect size to fit under the foot and help hold the fabric. Sew all the way around twice. Again, it's going to be worn by a toddler.
I also wanted it to stay close to the existing collar, so I did a quick whip stitch and attached the new ruffle neckline to the top of the old collar. 
For the hem, I took my 1" pieces of fabric and folded it over the bottom of the shirt. Again, lots of pins. I ran this straight through the machine, again I didn't fold it over. I like the look.
... and you're finished! This really took no time at all, and it was only $2!
When I had Bug try this one on, she said: