Genie in a bottle

Start by opening an image of a bottle.

Open another image of a funny looking man and drag the file to the main file.

Press Ctrl_T to transform the layer. Scale it down.
Create a selection of the man.
Press Ctrl+Shift+I to inverse the selection and press delete.

Rotate the man and move it up.

Draw a shape using pen tool.
Ctrl select the shape layer to get the selection and then hide the shape layer. Select the man's layer and press Ctrl+J to copy the selection in a new layer.
Select the man's layer using lasso tool delete the unwanted area.
Press Ctrl+T to transform. Right click the layer and select warp.
Adjust the nodes.

From layer menu select distort diffuse glow. Apply settings as shown
Create a new layer and fill it with white color.

From layer menu select render>>difference clouds.

 

Press Ctrl+F until to get the result like this.
Press Ctrl+U to open hue saturation window. Apply settings as shown
Change the color mode to exclusion. Reduce the transparency of this layer.