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You can also tie a ribbon (the doll's scarf) around to make the neck and give the doll a unique style.

Summary:
Cut off the heel and toe of a short sock. Turn inside out, draw the center line. Sew a quarter inch from the center line. Cut apart as shown. With a sturdy thread, sew 1/4 inch stitches around the neck and cinch them slightly to form the head.