I made Anna's Little Red Riding Hood Cape yesterday. Of course, she had to play in it for quite awhile afterwards.
I can't find the tutorial I used anymore. It was pretty simple. I used a $2.50 fleece blanket I found at the grocery store. I definitely could not have bought fabric for that cheap. The whole thing took maybe half an hour- and that included coercing Anna to try it on and bathing both girls while working on it. Now, all we need is a basket, one of her dresses, some tights and some appropriate shoes. Oh, and a Big Bad Wolf.