Start by opening an image of a child (or any face really).



Create selection of the kid using polygon lasso tool. Press Ctrl+J to copy paste the selection in a new layer.



Select the copied layer. Now create selection of the face using polygon lasso tool. Press Ctrl+Shift+J to cut paste the selection in a new layer.



Select the background layer and fill it with a solid color. Select the face layer. Press Ctrl+T. Right Click and select Warp. Adjust the nodes as shown.



From filter menu select liquefy. Select bloat tool and click above the eye portion to make the eyes pop out.





Press Ctrl+U to open hue/saturation window. Apply settings as shown.

Press Ctrl+T and warp it again. Select body layer and apply same hue/saturation values.



Select eraser tool and remove both the ears.



Open an image of Shrek. Create selection of the ear and copy it by pressing Ctrl+C.



Switch to main file and press Ctrl+V to paste the ear in main file. Knock out the background by using your favorite technique. Select Eraser tool with soft brush settings and apply it on the left side of the ear's layer to soften the edges.



Place as shown.



Duplicate the layer. Press Ctrl+T. Right click and select Flip Horizontal and place on the other side.



Create some rectangles with different colors in the background.



Select and merge all the kid layers. Double click the layer to open layer style window. Apply settings as shown.



Now doesn't this give it a nice glow to outline the new face!