A quick search led me learn that the "Watty" who signed this tiny carving was Cherokee carver Wahdih “Watty” Chiltoskie (1897-1973), who came from a family of carvers. There is not a lot out there about him, but I've included a photo of him at work. Among the few examples of his carvings that I've found, this tiny woman is definitely my favorite, looking wonderfully serene and grounded, with her seated body itself feeling rather like a bowl for the bowl resting in her lap. Nicely detailed fingers holding that bowl, too.
2 1/16” t x 1 1/4” w x 1 7/16” d and in very good condition, with a small surface crack to the wood at front left, very minor.