Step one: Measure your dolls chest area (not circumference, but simply the area across the front).
Step four: Run two rows of gathering stitches on the dress fabric and the lining.
Step six: Add the ribbon for ties to the right side of your main fabric (notice how they are pointing down). I ended up having to move them slightly from what is pictured -about 1/4 inch from the edge of the arm areas. If you want to be able to tie them at the shoulders, cut them at least 6 inches each. You can always trim them shorter if needed.