This size 3-4 girls dress was made using a free pattern and instructions by Dana from "Made" using a large t-shirt. The only variations that I made is instead of freezer paper stenciling a banana for the "Warhol" dress, I used free clip art from The Graphics Fairy of a Vintage Bicycle and added a ruffle at the bottom using a decorative stitch.
Using the black fabric paint I went over all of the black lines with black paint the positioned it on the t-shirt with the paint side down and lightly patted it down to transfer the image (Note: it will be a mirror image to whatever image you are transferring, so it won't work with lettering).
For the remainder of the dress, I followed the instructions.
I also added a two inch ruffle (approximately 1 yd wide) at the bottom, using an iron to press up a 1/2 inch hem then stitching down and using a gather stitch at the top. I then sewed the ends together, pinned underneath the shirt at the hem then applied the decorative stitch to finish.
Free Clipart at the Graphics Fairy at the following link: