Try coloring books. You can usually find something cute in them.
FatCat used to have a cute dragon, but I could not find it on her site. You might try contacting her.
Also, about a year ago someone was showing cute, whimsical dragon blocks they were doing. I think it was on this board. Can't remember if they were applique or embroidered, but very cute. Maybe someone remembers them and knows who to contact.
I remember when my kids were little, that I bought a pattern from one of the major pattern manufacturers that was for a dragon. It was about 3x4' and shaped like a dragon. You might check the craft section of the pattern books and see if they still have something like that.
There are all kinds of ways to do it. Good luck.