Illustrator Stevenson takes to wheels twice this month: in his own book about babies (below) and, here, in Dugan's fine debut--the story of a friendship between a little girl and a feisty but increasingly forgetful neighbor in a wheelchair. Mrs. Simpson invites Anne to tea and shows her some terrific yo-yo tricks. When she's hospitalized, Anne adopts her cat; later, visiting her in a nursing home, Anne gives Mrs. Simpson her beloved doll, thus completing the circle suggested in the title (the name of a yo-yo game)--the old lady assures Anne that ""I know all about babies."" The brisk narrative is full of funny, poignant conversations in which Mrs. Simpson mixes past and present; skillfully, Dugan balances the underlying sadness of her situation with the warmhearted humor that makes it bearable. Stevenson's depictions of the perky, sympathetic child and her beaming, if somewhat batty, friend hit just the right note of gentle humor and affection. A frequent theme, treated with unusual insight and imagination.