My doll sized quilt is 18"x18". I cut 18 squares 7"x7". You will need two squares per block. This was so easy to make and so much fun! I used flannel but you can also use cotton. After Christmas I'm going to make 3 twin sized rag quilts. I will use batting for those. Here is a great tutorial that explains how to use batting in your rag quilt. http://teachinggoodthings.com/blog/make-it-give-it-or-sell-it-rag-quilts/comment-page-1/
Here is a close up of the quilt.
This cost me nothing but a little time and some fabric scraps. My daughter will love it. What are you making for your little ones for Christmas?