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This was designed as a dolls short dress/tunic. Really easy to make. Pictured below on a 16" doll. The dress will be a bit shorter on an 18" doll, and if your dolly's arms are too chunky for the sleeves, make it sleeveless or 'cap sleeved' (remember to leave a seam allowance when cutting!) Suitable for hand sewing or machine.
Instructions: Lightly interface the neck for a crisp 'tunic' opening. Cut around leaving a small seam allowance, carefully snip into the sleeve and neck 'V's. Turn and press the neck opening and stitch. Right sides facing, stitch the sides of dress and arms. Then hem the bottoms of the dress and sleeves (or armholes if sleeveless).
I made a hair ribbon with the honey dot strip and the front of a little bag with the heart square.
Buying for an American girl doll? These dollies are a bit chunkier than my 16" english dolly and I'd recommend buying a knit which is stretchy xxx