Sure no problem. I am talking about the Linear D6 version of Grimm, but "Aspects" could also be used with the d20 version.
So you create a character just with stats and no advantages or disadvantages. Then you chose 6 "aspects" things about your character that can be advantages, disadvantages or both. This comes from the Fate rules.
When the game starts you get 6 Plot Points or Fate Points. When you want to use an aspect to perform something, then you spent one Fate Point and gain a simple +2, like with normal advantages. However if you say that one aspect is a disadvantage, then you take a -2 to your action and you gain one Fate Point.
This system removes a lot extra rules form the book and simplifies a lot for the GM and the players. It might be a good idea to limit the number of Fate Points a character can have at one time and the number of points that a player can use in one action. It also gives the player a bit more control over his character and the story.
About the Little Fears stuff. Well the game has a similar setting, children against monsters, but the tone is different. In the book are rules for creating monsters and magic items, that the children can use, like your magic teddy bear and so on.
An item does have a rating from 1 to 3. For every rank of the item it gets a special power for a list. This can be a +1 to a stat, a -1 to a stat for an opponent, some effect, some extra damage or protection and so on. Very generic.
Especially the +1 to damage or +1 to armor works great with the D6 version of Grimm. It is a simple way to generate magic items and effects if you want to have rules for it without hand waving everything.