This is how I personally have made small fabric dolls. I iron a light weight fusible interfacing onto the fabric that will be the head/face. That way, any embroidered items will not have thread ends that show through the back side of the fabric to the front. I sew two rectangles together, right sides facing each other.Iron the seam so that it faces down towards the colored fabric
Fold the fabric in half, right sides together. Make sure the seam is lined up. Place the template so that the neck is right at the seam.
Draw the outline. I use ball point pen. Embroider facial features. Fold right sides back together and stitch on the outline leaving an opening at the bottom. Leave a long thread end to use for sewing the seam shut after stuffing.
Cut about 1/4 inch outside the stitching line. Leave a larger seam allowance at the bottom to be turned to the inside to help prevent raveled edges from stuffing.
Carefully make little snips around the curves so that there will be no puckering when turned right side out.
Turn right side out
Get the seams all shaped correctly and iron. I turn under the lower edge and iron that also. I find that gives me a nice little line to stitch it closed. I sometimes put "fray check" along the lower raw edge before stuffing if it is a small seam, it will want to fray.
Then lightly stuff, hand stitch the raw edge closed. Embellish with trims, beads, lace, sequins, felt, yarn, charms, etc...