Thanks :) I will work on hands as you've said. regarding the pallete, I just started with a color and then drew like 50% opacity on a different color until thats what came out. I noticed I need around 5 colors to make a smooth ramp so I think If I take it in to account at the begginning, I can make a much more efficient pallete. About the clothing, I got a bit lazy at the end, and didn't know if I want to continue with this sprite. I think I'm going to do some different sprites with the concept of  'doing more with less'  in mind and maybe revisit this later.
I really appreciate the feedback so thanks again.

Man, it's like you improoved overnight, don't ever stop, if anything, you've already accomplished what last time you only intended to try. Respect. Keep at it - you have a unique style. I like the eyes, the hair, and the dithering. Work on the hands, use some references and try out different positions in very small pixel sizes like 20x20 and work your way up from there incrementing in 10px. (www.deviantart.com/art/Hand-Refrence-211865923 - reference for hands) Work with the same color palette, it seems like since you've worked with the skin tone of this character for so long that you have become aware of how to make the other colors pop. I like the reflection of the hair, that color is a good addition (dithering is your strong point). I see really nice volume and shadow around the belly the cape stands out, the arms not so much. Inside the cape it feels hollow, like as if he is really skinny, on the contrary the cape is so round that it makes him seem a lot thicker, the shadow and the dark parts on the inside do not read as round to me if that's what you intended.