hope it had time for some animation but i started to do this challenge late so this is what i came with,please leave some comments on my art i want to know hwere i need to get better and may the best art win :D
sorry to answer this now, but... yea, pillow shading is bad unless you need something that is pillow shaded, like a pillow (duh), some metal board maybe, idk, but most of the time it makes your art confusing, so it's something to avoid.
Usually what you have to do is to define a light source and work based on that, these tutorials might be somewhat helpful http://thepixelpalace.deviantart.com/journal/IJ-Pixel-Shading-Dithering-and-Pillow-Shading-335733411
and about the color counting, i remember someone posted a site that does it in the comunity, i won't have the link now, but most of the tools for pixel art have it...
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sorry to answer this now, but... yea, pillow shading is bad unless you need something that is pillow shaded, like a pillow (duh), some metal board maybe, idk, but most of the time it makes your art confusing, so it's something to avoid.

Usually what you have to do is to define a light source and work based on that, these tutorials might be somewhat helpful http://thepixelpalace.deviantart.com/journal/IJ-Pixel-Shading-Dithering-and-Pillow-Shading-335733411
and about the color counting, i remember someone posted a site that does it in the comunity, i won't have the link now, but most of the tools for pixel art have it...
I hope it helped