Perry,

Most all of the oil/varnish finishes are applied wipe on-wait a few minutes-wipe off. To the best of my knowledge, all varnish finishes need to be scuff sanded between coats in order for the next coat to adhere. Shellac and laquer do not have to be sanded in between coats as the solvent in both will melt into the previous coat, though you certainly can if you want to. As for number of coats with tung oil/varnish, for a doll cradle I would put on a minimum of three. If you think it will see hard use, more is better.

Good luck and have fun,
Bob