After three tries at different projects for this yarn I found one that I thought worked nicely. The yarn was Sensations self-patterning from JoAnn's, about a 3 weight. I hope my granddaughter likes it. The basic pattern was from Lion Brand yarns but I took a few liberties along the way.
I finally thought to take a picture of the sweater when I got to the lace portion. The sleeves had been done separately on DP needles then added to body. I love knitting in the round, mainly because I hate seaming.
The lace was k2tog, yo for one row then knit knit purl knit between.
Bottom and sides were seed stitch. This does help the edges lay flat.
Total cost for yarn (free button) was $1.00. I used two skeins to make a girls size 8. The yarn was on clearance. Total time invested - about 6 hours. That includes ribbeting three rows because I wasn't paying attention!