This photo made me squeal and dance in my computer chair. Katie of Duo Fiberworks just published the pattern for these nesting dolls in her online store, Hedgehog Lane. The pattern descriptions says,
Knit and felt a set of five nesting dolls. They fit snugly inside each other and are trimmed with wool felt and colorful embroidery. The dolls are sturdy and stand well on their own. Fun to play with or display, you can knit a matching set or use your yarn scraps and knit up a rainbow set. Optional embroidery decorates the dolls’ aprons.
See more on the blog. Or go to the online store to order the PDF pattern for just US $5.95.