Apparently the entire thing is worked in double knitting.
Lambie Peeps are knit using the double knitting
technique described here:
Their legs, body, and arms are doubleknit insideout
in one piece on one circular needle (or two
straight needles), then turned right side out and
the head is knit in the round. There are no
The two circulars are used to knit the small diameter in the round--she does mention using dpns if you prefer, but wrote the pattern for the two circs.
It seems like a lot of work for a little lamb, though, for a little lamb. Very cute, though.