Thank you so much for all the inputs! Here is what the breeder wrote to me just a few days ago about this issue:
"When I got Gracie as puppy I got her for breeding purposes and wanted her a little bigger so at 8 weeks she was at least 2 to 2.5 lb - she looked alot like Malibu. When you ask me if it surprises me that Malibu is 3 lbs at 12 weeks no I am not surprised. She is right on. You keep saying double the weight at 12 weeks --- no it is double the weight at 8 weeks. I am not sure where you heard the 12 weeks but that is not what we as breeders use. In my time as a buyer, breeder etc I have never heard of using 12 weeks as your basis. Anyway, going back to Gracie. She weighed 2 to 2 1/2 lbs at 8 weeks and she is now 4 lbs. or so and Chance's puppies always grow at first and then slow down ---- soooooo I think you are spazing (as you say) for nothing. I think she is going to level off anytime now. Poo poo on the recessive gene stuff.....Chance was purchased when he was a little over a year old so I am not sure how big he was at 8 weeks. Knowing what I do about Gracie's mom is that she is abount the same size as is Gracie her daddy is small. Chance's dad is the same size as Chance and I am pretty sure that mom is about the same size as I know all of her dogs are pretty much the same size. Do not let her get overweight cause as I said before she will eat all day if you let her."
I guess I will just trust the breeder. She probably knows best.