When I find the time to be crafty again, I definitely want to flower up a t-shirt or two using this technique from katie did, but I think I'd use more of a cascading arrangement instead of a tight collar. I can't spend too much time on her blog, though, because I feel like an underachiever looking at all of the gorgeous clothes she makes for her beautiful children.
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I suspect that Katie woman does not sleep - she has 3 kids and makes all those beautiful clothes!
http://mightygirl.com/2009/05/06/diy-j-crew-astrid-sweater-with-ruffles/