A

Doing this once before I decided to repeat what I did prior by doing the following :

Getting a rough sketch my conceptual layout I then proceeded by grabbing a general grey colour. I then began carving this colour using the erase tool into my desired shapes. It was during this stage I found it quite appealing to add the addition of the extra lump on the ears to add some extra shape whilst i also detached them from the head to give a more puppet like appearance.

Once I had the character's shapes marked in I went through doing the same for the background, debating making a parallax as I separated each layer however not having the time with my personal life. Instead I went on lospec and looked for a palette, settling on a very achromatic teal I did myself to minimise the detail I would be implementing.

Next I went over with a clipping layer and started to colour the shapes individually for both the character and background. Finding the character in the background began to disappear I took up a deep blue and went in with some outlines I then filled behind the figure to create a clean and clear divide.