Step 4: Add Lining
My head lining was a fail, so I need to offer better advice.
It seems obvious to me now that you need to but a hood shape into it. At the moment of execution, though, I was baffled. Consequently, there wasn't enough room for baby's head and we had to make an emergency field operation.
Cut a hood shape out of some fleece (or knit, something soft), and seam along the center back.
To line the body, I turned the bear inside out and pinned fabric all along it. I cut off the excess and created one large dart along the heiney area.
To finish, use a smallish whipstitch. You could get this under your machine, but I thought it might be more hassle than it was worth.
I also sewed a circle of felt behind the belly.