Three great colors for making doll bodies: Chana Dal, Fondant, and Mochi (they also have a darker brown yarn, Mocha). The yarns are available from Fabric.com and are reasonably priced at $6.98 for a 3.5 oz hank. Don't let the fact that the yarn comes in a hank disuade you from buying; to wind a hank into a ball of yarn, just take your kitchen chair, turn it upside down, and drap the hank around two legs. It takes me about 15 minutes to wind 3.5 oz of yarn into a ball.
Patons Classic Wool is a 100% wool yarn. It is NOT a superwash wool, so don't put your finished doll in the laundry, unless you want to felt her! This yarn has a lovely wool feel to it while knitting, and makes up a lovely doll: Ebony Grace was knit with this yarn. It is also available from Fabric.com, for $5.48 for a 3.5 oz skein. The colors above are Sesame and Winter White. Also available is a darker brown, Chestnut.
knitpicks.com for $2.69 for a 1.75oz skein. Right now I think they are on sale.
And a quick peak into my mess of a workroom. I see so many lovely pictures of to-die-for creative spaces and studios. Mine is a study in chaos, with yarn in plastic tubes, or the boxes it arrived in! Never enough room on the work table, which doubles as a photo shop. And dolls and fabric and lovely boxes from Michaels on most of the other surfaces :-)
Welcome to my mess!