This French artist (Lauren) has created a whole village of miniature people from Darwi air-dry clay. These are uncomplicated little dolls with painted features and clothes made of paper. Creative Paperclay would work well for this project also. If you need to translate this French website, you can go to
Google Translate but there's plenty of photos to look at without translating.
See head details here http://www.laurevolume.com/article-3227101.html and here http://www.laurevolume.com/article-3243453.html
Body is made of chenille stems wrapped with aluminum foil and covered in clay.
See more construction photos of Male (Pharmacist), Female and Child
Old Man details