Totoro Dress

My daughter is obsessed with Totoro and wants a Totoro dress for her 8th birthday party (Totoro-themed, of course). Together, we decided to do a Hide and Seek dress in grey with a white panel. On the panel, I want to do the little chevrons that Totoro has on his chest but I'm no sure how best to do them. At first I was thinking applique but they are so small and it's not a technique I'm great at and I'm afraid it won't come out looking as nice as I'd like it to. She suggested embroidery which is something I have never done before. I have some nice wool felt in the rightish color that I could attach with iron-on adhesive? I wonder if that would make it non-machine washable, though. What would you all suggest? Thanks! I can't wait to see how this dress comes out, I just wish she had requested it a little earlier! Laura (PS If you're not sure what Totoro looks like, here's a link: http://studio-ghibli.wikia.com/wiki/Totoro)