ANSWER:

This is not permissible. 

It is permissible to give children toys that have the shape of humans or animals. It is not permissible to have these drawings on the clothes of children or on such school supplies etc

The only thing permissible is selling or making such TOYS for kids to play with. 

QUESTION: Can I do a small business from home of cute stationeries and school supplies for kids with faces on them like cartoon characters because I heard we can sell dolls with faces