It's very cute, although I don't like the pillow-shading.
I think you could crop it a little closer and make the background transparent if you don't intend for it to have a backdrop or environment :).
Have you been checking out the PixelJoint Work In Progress (WIP) Forums? I'm sure if you read through some of the pre-existing threads you could learn a great deal how to improve your shading and so forth ^^.
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