When going through my grandmother's things a few months ago I set aside a few of her blouses, thinking I would make something out of them, but not sure what. Then I saw a tutorial for re-purposing a t-shirt into a toddler dress and decided to turn my grandmother's shirts into gifts for two of my nieces, who both have birthdays in October. All the blouses I had were made of knit material; I was a little worried about my sewing skills when it came to knits, since I had never sewn anything knit before. In the end I was pleased with how they turned out, and my sister reports that the girls love them!
A note about the braided collar: the tutorial says to pull on the fabric to curl the edges before braiding. No matter how much I pulled, neither of my knits would curl. I scrolled through the tutorial comments and saw that other people were having the same problem. It turns out that not all knits will roll up at the edges; thinner knits work better for this. You can still braid with a knit that doesn't curl, you will just have more exposed edges.
You girls are too cute. Aunt Sarah loves you!