My mom made these paper dolls for my girls one Christmas. They love them. They pull them out and play with them all the time.
She printed the paper dolls out in black and white from http://www.makingfriends.com/f_Friends.htm, colored them, laminated them, cut them out and put little magnets on the backs. You can use a simple cookie cutter sheet from the dollar store for these fun paper dolls.