Here are pictures of my progress so far :) Here is the dress, and this is the actual color of the yarn. The other pictures are a bit off.
Look at the beautiful detail
And here is the bonnet I made. Now I think it turned out bigger than I was anticipating. Definitely not a match for the little dress. It (the bonnet) fits my 9 month old daughter, so it will be more for a 6-12 month old and not a newborn (the size of the dress).
Now I think that there is something still missing. I could not decide on the ties for the hat, I am thinking about getting some ribbon and making a flower and ties from it. I will also incorporate that into the dress (did I mention that a new pattern with bigger sizes might be coming soon?) to bring it all together.