My friend Colleen, (A Dollmaking Journey) asked me about the size of this doll. She is about 7" from the tip of her toes to the top of her head. I love tiny dolls, but staying small and getting detail with paper clay can be a bit of a challenge. I use a mix of La Doll (very firm) and Premier (much softer) for the basic sculpt. I then remove excess by sanding, and/or a scalpel. Then I build areas using straight La Doll because it's very stiff and holds its shape. For example, for the lips, I add back a very tiny snake shaped piece of Premier and work it into place with a small,damp, filbert paintbrush.
You need to keep the hands small and delicate. I found the perfect tools for tiny fingernails. I've tried quite a few kinds, but this miniature set from AMC creatures, available on Etsy are fantastic, http://www.etsy.com/shop/AMCreatures. The set includes 3 sizes that work great for the thumb through the pinky.