Modifying a baby outfit for an American Girl Doll dress

I am trying to get through my laundry basket full of mending. In it was this little baby outfit that I accidentally let oxyclean sit on for too long.  I didn't really think to take a "before" picture, so the best I can do is show you the cut off bottom piece next to the jumper.  If you look closely, you can see those enzymes had a grand ole' time eating through the bodice and the legs in particular.

Some time ago, I came across this tutorial on how to convert a baby dress into an elegant dress for your 18" doll. I hate to let things go to waste, and I knew this outfit was too far gone to remake into anything useful for a baby, but I thought I might give it a shot for making it into a doll dress.

After I cut off the bottom of the jumper, I did a simple hem that would hide most of the uneven flaws.

I then put it on the doll and figured out how much I would have to take in the sides.  I pinned the dress where I wanted the new seam.  I probably would have been easier to put the doll with the reverse side showing first.

The pinned sides.

I did a simple basting stitch up the sides I started about an inch up from the hem--I wanted to take advantage of the fullness of the skirt. 

Then I began to trim away the excess...

The excess is trimmed off and it is ready for a finishing stitch for knits.

The finished stitch. 

Final product!