Firstly... a few tasty facts from a lovely book - Kinder Dolls
(available from Amazon and most good bookstores)
"The typical Waldorf doll is made from sheep's wool and cotton knit fabric. It has a unique inner head which gives form but not detail to the face. The origins of this type of doll come from a strong European tradition of doll making. Germany was the leading doll manufacturer in Europe in the 19th and early 20th century, dominating the doll market at home and abroad. Many dolls and toys were made at home during long winter months with materials that were at hand - wood, sheep's wool and cloth scraps. Individual people, notably Kathe Krusse, then developed these simple toys into commercial enterprises and the products found a ready market amongst the increasingly prosperous countries of Europe and America. However, dolls still continued to be made at home and the simplicity and charm of these formed dolls stuffed with sheep's wool ensured their survival despite the plethora of more sophisticated toys.
In Europe and later America, this type of doll became known as a "Waldorf Doll" and had a strong connection with Steiner education. Communities and Schools, based on Rudolf Steiner's methods were established in many different countries and the tradition of making this particular type of doll continued alongside the education.
Simple toys made from natural material are recognized as being of great importance for the wholesome development of young children."