I got DS a $10 baby doll off the shelves at Target, since I didn't know if he would like it and I didn't want to shell out a bunch of money for a Waldorf doll that he might ignore. It's a little boy baby with blue overalls, with a plastic head and cloth body.
Turns out, he loves his baby doll. He loves his trucks and blocks and stuff more for playing during the day, but he sleeps with his doll most nights. He's super sweet and gentle to the doll, and says he's the daddy. I, therefore, am the mommy, and I have to nurse the doll all the time. (He doesn't pretend that he's the mommy nursing the baby, he's more like, "Here, woman, the child needs feeding.") There's actually a super cute photo of him in mothering magazine this month wearing his baby in the sling and playing with his power drill.
In the last year he's gotten to absolutely adore real babies as well. He loves seeing babies and petting their heads and talking to them. I've also seen him fiercely sticking up for the younger toddlers at school when some of the bigger kids were being a little rough, which makes me super proud. I don't think that's only due to him having a baby doll, but I think it does help teach empathy.