1. Open 100 x 100 transparent bg. View, zoom in by 5, 2x.
Add a new layer, name it feet.
Fground colour #79462B, bground colour #A77A61.
Grab your paint brush draw the shape.
With your magic wand, click inside, and fill with bg colour.
Still with you magic wand, Select the left feet.
Selections, float, cutout.
Ver 0,hor 0, opa 100, blur 12.5, shadow colour #79462B.
Repeat the cutout on the right foot, change the blur to 8.5
Add new layer, outline still the same colour.
Paint the lines and duplicate mirror, repostion.

2. Add new layer, name it pom pom.
Change your fg #DCB792, and bg to #FEF8F2.
Continue on the outline, then click inside, fill with your bg colour.
Keep it selected, float cutout.
Ver 0,hor 0, opa 100, blur 12.5, shadow colour #DCB792.

3. Add new layer, name it hat 1.
Fground and bground are the same colour.
Continue on the outline, then click inside,
And fill with your bg colour.
Keep it selected, float cutout. Change the blur to 15.

4. Add new layer, name it hat 2.
Change your fg #9C3334, and bg to #FB9293.
Continue on the outline, then click inside
And fill with bg colour. Selections, float, cutout.
Ver 0,hor 0, opa 100, blur 17.5, shadow colour #9C3334.
Add new layer and use the same outline ( fground colour as before )
Adjust gaussian blur, raduis 0.70.

You should have like this so far :-).

5. Add new layer, name it head.
Fground colour #79462B, bground colour #A77A61.
Okie dokie let's give the bear a head :-).
Continue on the outline, with your magic wand.
Click inside and fill with your bg colour.
Selections, float, cutout.
Ver 1,hor 0, opa 100, blur 17.5, shadow colour #79462B.

6. With you magic wand, click on the inner ear.
Apply the same cutout change the blur to 6.3
Effects, noise, 6 uniform (psp7).
Psp 8, adjust, noise, gaussian, and check monochrome 6%.
Hide all the hat layers, and merge the remaining layers.

You should have like this now.

7. With you magic wand again :-).
click inside the head area, and fill with #D8A990.
Apply cutout change the blur to 15.
Now he does look like a bear lol.

8. Add new layer, name it nose. Change your fground to black.
Paint the nose and fill the rest with black.
Apply innerbevel, round, use the default setting.
Same layer, paint the eyes, change the size to 2.
And add some eyebrow too :-).
Add new layer,this will be the cheeks.
Fg colour #B96767, change the paint size to 6.
Apply gaussian blur of 2.00

9. *This is optional* Add new layer, Change your fground to #79462B.
Change the size your paintbrush to 1.
View 5x maybe twice. And paint like the screen shot.

Here are my 2 result.