This dress doesn’t use up much yarn and you are knitting it from the top down.
Using 3.25mm needles, cast on 27 sts, K1 P1 to end of row for 2 rows. This creates seed stitch border at top of dress. Beginning with a K row, st st 4 rows for small doll.
To make the waist:
(K5 K2tog) to last 6 sts, K4 K2tog. P 1 row.
(K4 K2tog) to last 5 sts, K3 K2tog. P 1 row.
(K3, inc in next st) to last 3 sts, K3. P 1 row.
(K4, inc in next st) to last 3 sts, K3. This makes the waist.
St st until piece measures 2.5 inches from cast on edge.
To make ruffle at bottom of dress:
K1 (yo, K1) to end of row. K 2 rows.
K1 (yo, K1) to end of row. K 1 row. Cast off.
Because the small doll doesn’t have the plastic bosom weight of a Barbie to hold up the dress, I added two crochet chain straps of 14 ch each.