Creating a monkey smiley

Start by creating a circle using elliptical shape tool.

Double click the layer to open layer style window. Apply layer style with the settings shown.

Create an elliptical selection using elliptical marquee tool. Create a new layer and apply a black to white gradient in linear mode.
Change the layer mode to screen.

Create an ellipse using elliptical shape tool.

Double click the layer to open layer style window. Apply layer style with the settings shown.
Create an elliptical selection using elliptical marquee tool. Create a new layer and apply a white to black to white gradient in linear mode. Change the layer mode to overlay.
Create a circle using elliptical shape tool.
Double click the layer to open layer style window. Apply layer style with the settings shown.

Create another circle for the eye ball using elliptical shape tool. Change the circle color to black. Apply the same layer style we used in previous step.

 

Duplicate the eye layers and place for the other side.

 

Create a circle using elliptical shape tool.
Ctrl+Click the layer thumbnail to get the selection. From select menu apply modify>>contract. Contract the selection by 2 pixels. Create a new layer and apply a black to white gradient in linear mode. Change the layer mode to overlay.
Create an elliptical selection using elliptical marquee tool. Create a new layer and apply a black to transparent gradient in linear mode.
Press Shift key and create circular selection twice using elliptical marquee tool. Create a new layer. Apply the same gradient we used in previous step.
Create an ellipse for the mouth using elliptical shape tool. Apply a gradient layer style.
Create an ellipse for the ear using elliptical shape tool. Press Ctrl+T. Right click the layer and select warp. Adjust nodes to get the shape of an ear.
Duplicate the layer. Scale it down and change the color.
Duplicate both the ear layers. Press Ctrl+T. Right click the layer and select flip horizontal. Place it for the other side.
Create a rectangle using rectangular shape tool. Press Ctrl+T. Right click the layer and select warp. Adjust nodes to get the shape as shown.
Create hand of the monkey using pen tool. Apply same layer style we used for the ear.
Similarly create arm for the other side.
Create an ellipse using elliptical shape tool. Move this layer below all the layers in layer order in layer palette.
Create a twirl shape using custom shape tool. Apply the same layer style we used for the arm.
Select the path using direct selection tool. Adjust the nodes to get the shape as shown.