First of all, you need to select a story book character or make your own. Draw a picture of how you want your version of the story book character to look. If you are really into your work or starting a small business, get a patent of any great looking doll you envision.
Make pattern of the face, body and clothing by deciding how big you want the doll. In addition to making your own fabric story book doll, you can get doll making kits that will have everything you need.
With old material, such as t-shirts, make a rough copy of your creation using the pattern you made, to get an idea of any changes you want to make. Do not buy good material and waste it on mistakes.
Now, you know that you are making Snow White, Raggedy Ann etc. or your own character, visit a nearby fabric store and pick out the material you required. Pick out buttons and ribbons. In addition you will need material for the clothing that the doll will have on.
Cut the material according to the pattern, the face, arms, body, legs, and for the clothing. When making the face and body parts, sew material inside out. This will prevent the threads and cut material to show up on the finished side of doll. Make the face of doll by sewing on the eyes, nose and lips, using buttons, patches etc. Then sew 1/2 of both parts of doll face and head together. Sew doll hair onto top of dolls head.
Using sewing machine or by hand stitch the doll parts 3/4 of the way. Then, fill doll body parts with stuffing usually a blend of material in cotton like form. Sew body parts together. Do the same to make the clothing. Fine tune your doll.