Creating a punch in the eye effect

Wer're going to make it seem like this poor kid got into a fight at school, and the end result was he got a black eye. Maybe he won the fight who knows, that's not important, let's just start the tutorial :) Start by opening an image of the boy.

From filter menu select liquify.
Select bloat tool from tool bar.

Use settings as shown.
Apply the brush to eye area to shrink the eye and click ok.
Create outer selection of the eye.

Now press Alt to subtract eye selection from the main selection.

Press Ctrl+Alt+D to feather the selection.
Press Ctrl+J to copy the selection in a new layer. Change the color mode to multiply.
Select eraser tool. Use eraser brush settings as shown.
Apply the eraser at the edges to smoothen the edges.