In your zone, M.s. 'Little Kitten' probably won't hit 3' tall. You're near the bottom of it's hardiness range, and than will cause it to underperform its potential height and spread.

There are other small grasses, some of which you have mentioned. Pennisetum 'Little Bunny,' 'Little Honey' and 'Piglet' are nice ones. As you said, there are also many nice Carex varieties which will stay under 2-3' in height.

I like to under-plant small grasses with spring flowering bulbs. There are a zillion possibilities, and they keep the bed from looking like a herd of hedgehogs after spring pruning the grasses.

Thank you donn. I was thinking of Carex "Ice Dance" since it looks more like a grass than "Evergold" I haven't seen Little Honey or Piglet in any nurseries locally. I still feel that the grasses give it a more natural look - I'm afraid it will look like a row of little UFOs. Do you think I could underplant daffodils with Little Kitten or would there be enough room?

You could use Daffodils, but I'd go with small ones, like 'Tete a Tete' or 'Minnow.' Minor bulbs would work well, too. The smaller bulb flowers won't leave as much long foliage behind.

I have both 'Ice Dance' and 'Evergold' and I prefer 'Evergold.' The foliage is much finer, and it remains in a distinct clump, while 'Ice Dance' tends to send out offsets. Another nice Carex, though a little taller, is Carex elata 'Aurea' Bowles Golden. It's a brilliant gold/yellow and will make a lovely 2+' tall clump.