Please go over and check out the tutorial for making handmade loops for buttons and hooks. While you are there be sure to check out her wonderful blog. If you have your own blog, join her party she hosts on Thursdays and share your tutorials.
Update: This dress had a full dress facing, because it was made for an infant. Most likely you'll be working with a normal facing, and will only need to just go under the facing to start the stitching rather than trying to pull the knot through the layer of fabric.
Sharing at several Linky Parties.