I purchased this great crochet pattern on Etsy a couple of years ago from Sour Apple Stitches, and spent several happy late pregnancy hours making little dresses for baby V. I recently came across it again, and whipped up a little top for her. The patterns is cute, and works up pretty quickly. I found that it tended to run a little short, so I added a couple of rows to the skirt, when making it as a dress, and to the bodice, when making the top.
The yarn I used this go round was some super soft hand painted cotton yarn I picked up at Tuesday Morning. The drape on this yarn is a little nicer than the other versions I've done. The pattern calls for for Sugar N Cream yarn, which is cheap, colorful, and easy to find. It feels ok to the touch, and gets softer with washing.
I love Etsy, and I love versatile patterns like this one. The dress goes up to a 2T, and with a little tinkering, can go from a dress to a top. The pattern includes options for a headband or a hat.