This website answers your questions

http://travel.state.gov/family/adoption/info/info_457.html#7

How Does the Child Get a Passport Under the Child Citizenship Act?

You will need the following when the child applies for a passport:

Proof of the child''s relationship to the American citizen parent. For the biological child of the American citizen this will be a certified copy of the foreign birth certificate (and translation if not in English). For an adopted child, it is a certified copy of the final adoption decree (and translation if not in English);

The child''s foreign passport showing the Bureau of Citizenship and Immigration Services in the Department of Homeland Security (BCIS) I-551 stamp in the passport, or the child''s permanent resident card (green card);
Proof of identity of the American citizen parent(s)
Passport application, passport photographs and fees. Go to Passport Services for forms and full instructions.