Add a new vector layer under the head layer naming it ears, use the same color and settings to make both of his ears.
Add a new vector layer at the very bottom naming it neck, use the same color and preset shapes ellipse to make the neck.
Add a new vector layer right above the pants layer naming it bear body, change your background color to #E4A16C and use preset shapes ellipse to make the bears body.
Add a new vector layer right under the bears body and name it bears back leg, use the same color and settings for this.
Add a new vector layer right above the bears body naming it bears front leg and use the same color to make this.
Add a new vector layer at the very top naming it bears back arm and make his arm, same settings and color.
Add a new vector layer above that naming it bears front arm and make this arm the same way.
Add a new vector layer above that and name it bears head, same color and ellipse to make his head...
Add a new vector layer above the bears head naming it bears muzzle, change your background color to #EEC4A2 and use ellipse to make the muzzle.
Add a new vector layer above that naming it bears ear and use the same color and shape to make the ear.
Add a new vector layer under the bears head and name it bears back ear, make an ellipse using the same color for this.
When you are happy with the way it looks so far, right click on each of the layers in your layers pallet and choose convert to raster layer.
We will work on the boy first, so turn all the bear layers off by clicking on the glasses next to the layer in your layers pallet.
Add a new raster layer right above the boys head naming it hair1 and use the
paintbrush 
with the settings below
and #996B54 to paint some hair. If you do not have the custom brush shown below
you can get it here, unzip this into your psp brush
folder.
On this same layer, switch to the retouch tool 
with the same custom brush and the settings shown below and run your brush down
the hair to darken it a bit.
Now switch to Lighten RGB with the settings shown below and the same custom brush here too and add some highlights in the hair.
