Newborn sized Oliver+S Tea Party Dress

I bought the pattern and want to shrink the 0-3 month size to fit a newborn as a coming home outfit.  Any ideas?  The 2 options I am considering are tracing the pattern as is and shrinking it by 25-30% at kinkos.  I also thought about just tracing in about 1/4-1/2" on all the pattern peices.  Any advise would be appreciated!

I don't recommend shrinking a pattern. Things tend to get a little warped in my experience.

You should take a close look at the pattern. There is usually a gentle grade of increases at various points on the pattern. You could simply follow the increments of increases, but in the opposite direction, of course.

You could also try simply increasing your seam allowance. Sometimes, it's the easiest adjustment and it works well.
 

I'll throw in that it gets really pricey at Kinko's very quickly to put together patterns.  It cost me $20 one day to blow up a pattern.  It was irksome.

Here's an elaboration of what Irene mentioned about grading the pattern down.

http://sewing.patternreview.com/cgi-bin/review/readreview.pl?readreview=1&ID=982

Thank you both for the suggestions! 

Ha! I just went to that link and her name is Irene too. How funny is that!