As Heidi Klum sashayed down the runway to spill the beans (well, sort of), the remaining 13 designers gnawed their manicured fingernails in anticipation of the third challenge: designing for a fashion icon. Perhaps Sarah Jessica Parker or—dare we dream—Victoria Beckham? Klum kept mum while the bamboozled contestants plodded down to Times Square in search of the idol’s lavish abode. As it turned out, the dreamy dwelling was Toys-R-Us, and the dangerously proportioned icon of the hour was none other than Barbie herself. The bewildered group was given the task of designing an outfit, in both life size and diminutive doll proportions, with $150 and two days to finish—“a test of creative vision,” Tim declared. But the bad news preceded the good: The winner’s design would become a limited-edition My Scene Barbie ensemble, complete with his or her name and picture on the box, courtesy of (shameless plug) Mattel.

From that point, the designers jabbed and shoved to get at their miniature muses and, later, suffered a time windfall. A disgruntled Kara scavenged the toy store searching for her doll’s lost hat, while underdog Daniel F. scanned his creation, marching to and fro like a Buckingham Palace guard. When the models hit the runway baring long Barbie-esque locks, Chloe’s cotton-candy-pink dress with asymmetrical hem and contrasting lining was flawless; Emmett’s baby blue mod-meets-Michael Stars minidress sparkled; and Diana’s red circular cutout hoodie and gray pleated skirt wowed us with its inventiveness. Andrae’s orange balloon skirt and skimpy tube top, while ambitious, were unsuitable given the assignment, and the designs of Daniel F., Guadalupe, Zulema, and Daniel V. blah-ed us to boredom. Not one to mince words, Michael Kors deemed Marla’s too-provocative two-piece “sad” and, even worse, Raymundo’s matronly surfer rag dress and hemplike jacket as resembling a “Halloween tablecloth” (bye-bye, Raymundo). Much to the chagrin of Santino, whose purple accordion dress was by all accounts pitch-perfect, Nick’s ruched multitonal halter (shown) bested the field, with a graphic three-tiered bottom and Mattel-friendly matching head scarf.

One final note: Klum and New York City Mayor Bloomberg announced that Project Runway will be auctioning off this season’s dresses the day after each episode airs. Half the proceeds will go to support the Garment Industry Development Corporation, a nonprofit organization that helps to maintain Manhattan’s fashion district. —Jennifer Ciotta