Start by creating an ellipse using elliptical shape tool.



Enable add to shape area from the top bar. Create two circles for the ears using elliptical shape tool.



Create hair using pen tool.



Create two circles using elliptical shape tool. Place it for the eyes.



Create a triangular shape using polygon shape tool. Place it for the nose. Using pen tool create lips.



Create hand shapes using custom shape tool. Apply one pixel white stroke to these hand layers.



Create an ellipse using elliptical shape tool. Press Ctrl+T and rotate slightly. Place it for the arm.