The movie starts with the doll, Anabelle, seated alone, and 2 young nursing students, Donna & Angie and a guy, Lou, being interviewed by Ed & Lorraine (E&L).
Their story...
Donna owned the doll, Anabelle.

They noticed Annabelle seemed to move on her own. At first it was just changes in position, then changes in loaction. The girls would leave the apartment with Annabelle on Donna’s bed and return home to find it on the couch.
Then they started to find pieces of messages written on paper...
Flashback:
One night when the nurses returned home, they saw a piece of brown crumpled paper on the floor written in child's handwriting:
“Miss Me?” 
When they entered the apartment, the wall was full of red crayon doodles and the ceiling had a similar message “Miss me?” written in similar child's handwriting.
Then, a red crayon rolled into the room and both of them panicked. One of the girls brought the piece of crumpled note and Annabelle to the huge garbage bin at the back alley and dumped them, closing the lid.
When they were sleeping, suddenly the nurses heard loud banging on the door and went to check. When she opened the door, the brown crumpled note was on the floor.
Scene return to current living room:
Donna said she consulted a medium... and the medium said that a girl named Annabelle had been found dead in that apartment. When the doll came into the apartment, the spirit attached to it. The spirit just wanted to stay with them.
Being nice caring nursing students, they agreed. But things got worse and they decided to call E&L.
E&L told them that actually the doll was a “conduit” for inhuman spirit.
They asked what was inhuman spirit?
E&L told them inhuman spirits are demons
Evil spirits do not possess inanimate objects. They possess humans. The evil spirits actually wanted to possess the girl, and the girls had allowed the evil spirit to do so by keeping the doll.
Then the scene cut to a lecture hall where E&L were lecturing about this case and the audience raised their hands asking questions like "what happened next?"
E&L asked a priest to peform exorcism on the apartment and E&L took away the doll.
“where is the doll now?”
Ed answered: “In a safe place…”