While in Japan I learned the awesome art of kimekomi! In short, to make the dolls you cut the fabric and lay it over the wooden figure, shaping the fabric into the grooves with glue and special tools. You can buy kits in Japan that are really fun! Before gluing the fabric there might be some sanding, chiseling, and maybe adding on to the wooden figure base.
Here are the photos of all the kimekomi I have made so far!