Graphene is considered to be a promising material for future electronics. The envisaged transistor applications often rely on precision cutting of graphene sheets with nanometer accuracy. In this letter we demonstrate graphene-based quantum dots created by using atomic force microscopy (AFM) with tip-assisted electrochemical etching. This lithography technique provides resolution of about 20 nm, which can probably be further improved by employing sharper tips and better humidity control. The behavior of our smallest dots in magnetic field has allowed us to identify the charge neutrality point and distinguish the states with one electron, no charge and one hole left inside the quantum dot.