Wow, that edit looks amazing! I will save this later for future references!! *bows* And funny because I usually outline most of my icons, but I guess I was trying so hard to stick true to the original. ^^;; You make it seem so easy to use 16 colors!! I have a lot to learn, thank you!!
Thanks for the compliment! Yeah, I was unhappy with the shading, but I want to make it in time of the deadline. Trying to work with only 16 colors was hard enough! =D I need to read up more on hue shifts! Thanks for the advice!
I really like the character and the design of the dress, but I think it would look better if you toned down the outlines. I don't think it really fits when you're using such bright colors for the rest. I would use the brightest orange to give more volume to the dress. It would make the dress more orange than yellow, but then you'd also get a hue shift from yellow to orange, which I think would make it a bit more interesting. You could also add highlights to the pink areas on her dress, and add a pattern of darker squares to the background to make it a bit less plain.
Here's an edit where I've tried to apply the things I mentioned. Hope that's helpful.
The character design is really cool, also like her face :) The shading on the clothing needs some work though, you should try some hue shifts maybe? Instead of just a slightly darker yellow for the shadows.
Want to give some dough back to all those amazing pixel artists? Donations provide prize money for contests, help cover hosting costs and support new initiatives.