This is a cute Wombat. They are native to Australia and according to Wikipedia, the name wombat comes from the now nearly extinct Darug language spoken by the Aboriginal Darug people who originally inhabited the Sydney area.
When you are learning how to make dolls, stuffing them becomes a steep learning curve. If you are working with wool stuffing, then the difficulty increases, as wool behaves quite differently than other materials. In this dollmaking post and video tutor