Apply now Blending Options>Drop Shadow, setting the parameters demonstrated next image:
Make a copy of the layer and select Free Transform > Flip horizontal option to turn the copy horizontally and place it as the way from below:
We have got at this stage the Santa's moustache. Next we have to make the eyes. In this case we have to make also an ellipse and then hold on Alt button to get the other one, making the corrections on the elements' shapes the way shown next picture:
Make a copy of the eye and place it close to the first one:
Now we'll represent the big red nose, choosing for this operation the Ellipse Tool (U) too.
Blending Options>Gradient Overlay
Try to represent now two highlights on the nose, composed of two white ellipses, the way you may see below:
Using the same instrument, try to make two more ellipses, reserved for the eyebrows:
Select Blending Options>Drop Shadow
Now we'll picture the Santa's cap. In this case we'll use again the method of subtraction one ellipse out of the other one. Create for the beginning the first element of our cap:
Let's divert the attention from the cap and start drawing the hair locks, bristling out of the cap. Make a copy of the eyebrow's layer and set the necessary points to get the same result from below:
Get back to the cap and choose the Pen Tool (P) with the color #E92225 to draw the top part of the cap:
The cap is finished. Pass to representing the Santa's ears with the Ellipse Tool (U). Firstly we need to represent a small ellipse:
Choose for this layer Blending Options>Gradient Overlay
Make a copy of the ear and place the copy the way demonstrated next image:
Select again the Pen Tool (P) to represent the character's beard:
Next we'll draw one more ellipse that is going to be the character's mouth, placing the corresponding points of ellipse as next picture shows it:
Blending Options>Gradient Overlay
Using the method of subtraction one ellipse out of the other, make the last mouth's element, having the color #D8D8D8.
Start representing Santa's arms. Begin with the one, situated near to us. This is the hand that will keep also the presents' sack. Let's choose again the Ellipse Tool (U) with the color #E02126 and represent an oval which shape will be adapted to our needs. Press Shift button to represent a rectangle with round corners, selecting previously the Rounded Rectangle Tool (U) with the same color's code mentioned above. Then we have to mark it out with Path Selection Tool and turn it over with Free Transform selection. Press Alt button to make two copies of it:
As you may see, we have made the mitten and a piece of the sack that Santa will keep in his hands. Continue representing his arm. Take after that the Pen Tool (P) to draw the basis of our mitten (the fur).
The Ellipse Tool (U) will be helpful when representing the elbow (the color - #D52027). Place the ellipse's points as below:
Finally we have to finish the sack, having the color #CD2026
Start representing the other arm. Select the same Ellipse Tool (U), having the color #D12026 and represent an ellipse as the next picture indicates it.
Represent the Santa's finger out of the same ellipse, having the color #C12026.
Use now the Rounded Rectangle Tool (U) to create the lowest part of the mitten, making the corrections on its shape the way demonstrated below:
Blending Options>Gradient Overlay:
Using the same instrument, try to represent the rest of the arm, colored with #CA2128
More Tutorials: 
