See comments for errata.

(description from Knitty.com)

When knitting something for my daughter, my first thought is, "Yeah, but how long will that really fit her?" followed closely by, "When exactly am I going to find the time to hand wash that? "

The answers for this particular top are: "A while," and, "You don't have to."

This little top accommodates a wide range of sizes by adjusting the smocking and shoulder ties.

The top pictured is a size 2 that has been cinched snug (Baby Girl normally wears 12-18 month sized clothing, Grace normally wears 3T sized clothing). When picking a size, you should go up, as larger sizes can be cinched tighter and thus will last longer for your growing girl.