Print the paper pattern, piece together with tape as per instructions. Cut around black lines to create the dress pattern. Cut two dress pieces from fabric, both on the fold of the fabric.
Fold open the dress and create an inverted pleat at the center. To create the inverted pleat, place the pleat line, pin in the center and open up the back fold on the dress so that it is center and flat on both sides. Pin either edge of the back fold to the dress and remove the pleat line pin. Secure with a baste stitch along the top edge of the pleat, 1/8" away from the edge.
Cut a piece of the fold-over elastic for the neckline that is one inch shorter than the actual neckline width. Pin the center of the neckline to the center of the dress (at the pleat), and pin each edge of the fold-over elastic to the side edges of the neckline. This is simply to hold the elastic in place.
Starting at one edge of the elastic, sew the bottom edge of the elastic to the wrong side of the neckline using a zigzag or stretch stitch at 1/8" seam allowance. Gently pull on the elastic as you go, so that the elastic is the same size as the neckline. Remove the pins as you get to them while sewing.
Fold over the edge of the elastic to the right side of the neckline, covering up your raw edge neckline. Pin your “stay pin” areas, and then sew using a zigzag or stretch stitch. Once again, stretch the elastic gently as you are sewing, so that it is the same width as the neckline.
Place one dress pattern piece on top of the other, so that the right sides are facing up. Match up the armholes, so that the neckline on each dress meets with the "X" on the pattern piece. Pin in place then attach using a baste stitch.
And you are finished. You now have an adorable baby dress that every mom will love. Pair with some homemade baby bloomers for the perfect baby shower gift.