My sister, Angie, had seen a blog with a tutorial for a kid's dress made from a man's dress shirt. We decided to attempt it. It was pretty easy, and I think it turned out well. We actually ended up making two in a couple of hours.
Lily modeling the second dress (yes, this is the best shot I could get):
The first dress we made:
Here is the link to the original tutorial, in case you want to make your own: