1. Duplicate the layers with the base color and shadow then position them above the original base color and shadow layers. The new layers will be used for dodging and burning while the old layers will be used to load selection with the Magic Wand tool. Select the layer with the base color and use the Magic Wand tool to create a selection of an area that you want to edit. In the image above, we created a selection of the hair.
2. When using the Dodge or Burn tool, turn on the “Other Dynamics” option in the Brushes palette (Window > Brushes).
3. Also, in the Dodge or Burn tool options, set the range option to Midtones.
4. When using the Dodge or Burn tool, set the hardness to 0%.
5. Select the top shadow layer (shade 2 in the screenshot). You will be using the Dodge and Burn tool to create a gradient in the shadows. Start with the Burn tool to darken the areas in a smooth motion on the lower part of the shadow.
6. On the same layer, select the Dodge tool and lighten the upper part of the shadow.
7. Select the duplicated layer with the base color. Use the Dodge tool to lighten the upper area of the base color.
8. Use the Burn tool to burn the lower area of the base color.

Step 6 – Adding Reflected Light

1. Use the same setting as previously used for the Magic Wand tool.
2. Turn on the “Other Dynamics” setting in the Brush palette (Window > Brushes).
3. Set the Brush hardness to 0%.
4. For this image, a dark purple color was used to shade the area with no reflected light. The light source is from the left of the image so the right side of the characters were painted with dark purple.
5. A light yellow color was used to shade the areas facing the ambient light.

Step 7 – Coloring the Outline

1. Leave the brush presets on.
2. In the Layers palette, select the layer with the outline then lock the transparent pixels by clicking on the button.
3. Use the Brush tool to color the outline using a color that is close to the outline.
4. Keep using the Eye Dropper tool to select the color beside the outline.

Step 8 – Creating the Smokes

1. Create a new layer for the clouds. Use the Brush tool with a hardness of 100% and paint some zigzag shapes for the smoke.
2. Use the Smudge tool to smudge it in the motion shown above.
3. Use the Dodge and Burn tools to create volume on the smoke so that it looks 3D.
4. Load the selection (Select > Load Selection) of your smoke layer. Choose Select > Modify > Contract and enter an amount that will make the selection half its size. You may have to undo and try this several times to get the correct amount.
5. Create a new layer for the smoke highlights. Use the Brush tool and paint inside the smoke with yellow orange.
6. Select the Move tool and nudge the layer up by pressing the up arrow on your keyboard.

Step 9 – Creating the Cloudy Sky

1. Create a new layer for the sky and name the layer “sky”. Use the Gradient Tool to create a gradient like the image above (#1).
2. Create a new layer above the sky layer and name this “clouds”. Use the Brush tool and paint some lines to create the shape of the cloud.
3. Use the Smudge tool to smudge the cloud layer in the motion shown (#3).
4. Load the selection of the clouds layer (Select > Load Selection). Choose Select > Modify > Contract and contract the selection like you did when you were creating the smoke. The selection should be close to half of what it was. You may have to try this more than once to get the right value.
5. Create a new layer and mane this layer “clouds 2”. Position it above the clouds layer. Select a color that it slightly darker than the color you used to create the clouds. It should still have the same hue and saturation. Paint the selected area with this color.
6. Use the Dodge and Burn tools to add volume to the clouds so that they look 3D.
7. Duplicate the clouds layer then use the Free Transform tool (Edit > Free Transform) and enlarge the cloud. Set the opacity of this new layer to 75%.
8. Use the Dodge and Burn tools on the sky layer to create a light source.

Step 10 – Adding Light

1. Create a new layer and name this layer “light”. Move the layer to the very top so that it is above all the other layers.
2. Select the Brush tool. In the Brushes palette (Window > Brushes), checkmark the Other Dynamics option.
3. Set the brush hardness to 0% for soft edges.
4. Select white as the foreground color then paint the areas where you want the light to appear. The image above shows the areas that were painted.

Step 11 – Tinting With a Gradient