I’ve held on to this link for a while, from back when I was deep in the throes of doll-making for DD. She picked out various Anime characters for me to use for the faces of the dolls, and in searching for doll-making based on kid’s ideas, I found Child’s Own Studio. I loved the idea but it wasn’t really helpful for MY needs at the time. Still, I thought it was a genius idea. Looking at the site it seems like she may have a backlog to work thru, but it might be worth bookmarking if you fancy the idea. Or if you sew, maybe looking at the drawing/result duos might give you some ideas for interpreting your own child’s drawing as a toy.
One of my favorites is this one:
and this one! What kid wouldn’t love a soft toy that was so clearly made real from their own drawing?
Check out both the site and the Flickr photo stream for loads of example. They are all perfectly rendered from the drawings, IMHO and too much fun!