Kidshannon

Some very nice kids illustration

http://www.kidshannon.com/.org/projectexamples/

Orisinal

A set of beautiful and addictive flash games. Each game looks like a painting .
http://www.ferryhalim.com
They have an online store as well
http://www.cafepress.com/orisinal

Bobles

Very intrresting and colourful furniture.
http://www.bobles.dk/en/37541/TUMBLING%20ANIMALS

Toys and dolls

This reminds me of the dolls my mom used to make me when I was a kid :)
Hillary Lang has made some amazing dolls you must check out :)
http://flickr.com/photos/hillarylang/sets/463804/

Roll Call

This is not related to design for children. But this video is very touching.

Special need toys

This site is filled with toys for children. I wouldn't say only for children with special needs as I am sure every child will enjoy it. :)
http://www.specialneedstoys.com/UK/

Once upon a time

http://wetellstories.co.uk/stories/week3/
Time to create your own stories...Pretty neat

lala-a-gogo

http://www.lala-a-gogo.com/
Lala has a room of a princess..... she seems very mysterious....Do check her blog as well
http://blog.lala-a-gogo.com/

International Children's Digital Library

Try reading a book. The experience is really simple and intuitive.
Surely designed for and by children.
http://www.childrenslibrary.org/

Sam's toy box

I have never seen anybody with such a huge collection of toys. I am glad he has documented it. I wonder why they don't make more Chocolate Factory Games would love to Play and eat yummmmmmm :)

http://www.samstoybox.com/