I made a set of paper dolls for my little sisters for Christmas...each doll representing a member of the family: Dad, my step mom, the twinners, Andrew and me, Becksterooni, and Miss Aurora.
They were drawn on heavy duty water color paper, colored in with Prismacolors, and outlined with a thin black permanent marker. In hindsight, I would have used some nice Chartpak markers for the color instead, to avoid so much texture. I was out of town at the time that I drew these, and only had the colored pencils with me.
Then I drew speech and thought bubbles to go with each doll, laminated everything for durability, and super glued magnets to the backs. Now they can hang on the fridge or a white board.
The speech bubbles are my favorite part. They add an extra interactive element that I think the entire family can enjoy. What's great about them, is that the laminating makes it easy to change what the dolls are saying and thinking with a dry erase marker.