1. Start of by creating new document. Mine is 400px by 400px. Then using the eliptical marquee tool make a circle selection in the middle of your page.
Create a new layer called "head" by going to Layer >> New Layer and then using the Paint Bucket tool fill in the selected area with #655130.
2. Now again using the marquee tool select a wider circle which isnt as high and locate it just below your first circle. Then use the fill took and fill it in with the same colour on the same layer.
3. Use the eliptical tool again and select another circle within the filled area towards the bottom of it. Make sure to leave an equal gap around the bottom and sides of it. Create a new layer called "mouth" and fill it in with #955d24.
4. Select a fairly small circle towards the top left but still connected. Create a new layer and call it "ears". Fill in the selection with #955d24. Do this again on the right hand side. Now on the Layers window click and drag the ears layer so it is beneath the head and mouth layers.
5. Right-click on your head layer and go to Blending Options. On the left hand side select Stroke and use the following settings.
6. Click OK. Right click on your ears layer and again go to Blending Options. Select Stroke on the left and give it the following settings.
7. Use the eliptical tool and on the left ear click and make a selection which is slightly smaller than the ear (not including the black outline). Now hold down Alt and again make a selection but this time put it over your selected circle to make a moon like shape. Create a new layer and call it "leftear".
Now fill in the selected moon-like shape with #c78122. Right click on the leftear shape and select Duplicate. Rename it to "rightear" and click OK. Then go to Edit >> Transform >> Flip Horizontal. Using the pointer tool drag this new shape over to the right ear and position it inside.
8. Now using the eliptical tool select a circle which is slightly within the mouth shape. Create a new layer and call it "mouthhighlight". Now again using the eliptical marquee tool hold down Alt and make a moon like shape. Fill the selection in with #c78122. Now change the opacity of this layer to 30%.
9. Use the eliptical marquee tool and make a selection for an eye. Create a new layer called "eyes" and fill it in with #FFFFFF (white). Make another selection for the second eye and again fill it in with #FFFFFF.
10. Make another circle selection within one of the eyes - slightly smaller. Create a new layer call "eyeinside" and fill it in with #424242. Now make another selection of the same size for the other eye and fill it in with #424242.
11. Use the eliptical marquee tool and make a selection for the mouth. Then hold down Alt and deselect the top most of it to create a line for the mouth.
Then using the rectnagule marquee tool hold down Alt and deselect the left and right of the selection. You should make sure thath the selected line is quite thin. Create a new layer and call it "mouthline". Fill it in with #000000 (black).
12. Right click on your mouthline layer and go to Blending Options. Select stroke and use the following settings.
13. Also give it the following settings for Drop Shadow.
14. Click OK. You should now have the following.
15. Use the eliptical marquee tool and make a small circle selection above the mouth line for a nostrel. Create a new layer and call it "nose". Fill in the selected area with #000000. Create another one of these circles next to that one and fill it in with #000000 again.
16. And thats it. Here is my final result with a different background colour. Enjoy!
You can download the PSD here.