You will need to shape pieces according to how you want your bear to look.  Some folks like a more pointed nose, for example, so you might need to do some experimenting for a project like this one. 

 Head:  form nose portion similar to a toe (working back and forth fo the cylinder) but go down to six stitches and back to full cylinder; knit suitable section for the head and take off on scrap yarn.  Run the end of the yarn through the final rounds of stitches.  Stuff the head to shape and using a doubled length of yarn, sew it to retain shape.  Stuff the extra "fabric" inside the head.  Ears are formed in a similar manner by using a section of cylinder about 14 needles wide and knitting a "pouch" going back and forth down to four or six stitches and back to the original width.  Sew in place on the head.  Use beads or buttons for eyes.

 The body is a simple tube that begins with a "toe" and ends with a "toe".  Sew the head in place.

 I made the arms using the full size of the cylinder.  The elbows are formed by using a small section of the cylinder (twenty stitches wide) and forming a projection the size and shape that you want the elbow so the arm will stay bent.  Knit tube to length you want the arm (with the elbow section centered in the middle).  Remove on scrap yarn and run the end of yarn loosely through end stitches.  Turn inside out.  Stitch down the center of the tube to make the arm half as wide.  Turn back to right side.  The extra webbing will be part of your stuffing for the arm.   Stuff arm.  Use doubled yarn to tuck in the end portions and sew into shape.  Attach to body with buttons to secure.

 Repeat legs same as arms.  I took a whipped cream or butter tub lid and cut the foot shapes to keep the bottom of the foot flat.  Shape as arm pieces.  Sew to body with buttons to secure.

 Use contrasting yarn to outline the mouth.

 Sweater:

Short section of ribbing, then knit length from ribbing to armhole.  Knit left side of arm and shoulder by

raising 3/4 of needles out of work, knitting length for length to reach shoulder, then terminating yarn at the shoulder.  Repeat on each quarter (right front, right back, left back).  Join shoulder seams.

 Hat:

Start with a closed hem for the edge.  You can either knit a few rounds and form it as a toe or simply knit several rounds and gather the top closed.  Style hat appropriately for the "theme" of your bear.  I used camouflage for my military theme.

 Locate doll accessories to add to the finished product.  For the military bear, a "dog tag" with the name of the bear is typically suitable.  There are many doll chairs available for items this size, though your bear can certainly sit on his own or recline.