At long last! Knit This brings you Tiny Knit!
It is available for just L$45 at Knit This in Amida (86, 141, 27). Have you ever tried to make tiny animations? Not something I plan to try again, even though Tiny Knit is ridiculously cute and you can certainly tell that your tiny is knitting.
Needles attach to the forearms (you can adjust the attachment point), only the upper body is involved in the animation so the standard tiny sit works with it (attach needles after sitting for best results), and the left needle is mod so that you can tint your project.
Just a reminder - today is World Wide Knit in Public Day! There is a free t-shirt at the shop to celebrate.