My daughter was given these pants last winter and has just loved them to death. This summer holes in the knees began to form and like any three year sees a hole and she just had to help it continue to get bigger in a matter of seconds. So these pants had two huge holes one in each leg. What was nice was that the holes were formed in about the same spot. So I cut off each leg and made sure that they matched in length. I forgot to take a before picture of them before I cut the legs off. So this is after the legs got cut off :)
I cut two strips of fabric and made them into tubes. I made sure that the fabric was turn with the right side out and then basted across the top and created a gather. I then pinned the fabric to the outside of the pant leg, so the ruffle looked like it was upside down. After stitching it to the pants I flip the ruffle back down and top stitch across the bottom of the leg to make the ruffle stay down. These are how they turned out.
My daughter loved them and found them the next day and wore them the whole day, never mind that it was in the 20s outside. I'm glad that she still likes them.