The pattern came from, I think, a Womans Weekly magazine - and I still have it. There are two head and upper body pieces to join together waist to waist and then stuff; the skirt is made from two quite large circles where one side is the 'awake' skirt and the other the nightie's skirt, stitched together round the bottom and handsewn to the respective waists. The joins are covered with lace, ric-rac or other trims. The little cap is a circle of material gathered and sewn on to conceal the bald head and wool stitched on to make hair poking out from the cap. It's not easy to make satisfactory hair with a needle and wool but perhaps there are different methods these days. The features are just stitched on and (probably) coloured pencil applied for the rosy cheeks. I think the big black eyes are probably penny-sized circles of black felt.
I wouldn't mind betting it's stuffed with offcuts of quilt batting!