That is so sweet! I hope it helps her. My children still all grieve for my mom as do I. My mother died when my youngest two were newborns. The girls are 7 now and always ask who and where their grandma is. My oldest son got married and his mother in law sports a head full of beautiful gray hair. She spends Thanksgiving with us and we see her a couple of times a year. She has been wonderfully receptive when the twins spontaneously started calling her grandma.
When she comes she makes sure to bring something fun to share with them and she spends time with them. On Easter she brought chalk and played outside with them.

I love the idea of using the fabric from Granny's nightgown for the doll's dress. Very clever. That doll is so cute. I hope the little girl will love it.