I begin with an extremely rough 'pencil' sketch. At this point I am not concerned with details themselves. I use simple circles and ovals to create the anatomy the weight of those very long ears and that really inquisitive pose. It really helps keep the imaginations in my mind.
Once I am content with the pose, I will use a clean and solid brush to work over the sketch itself. I focused on establishing a consistent line weight, but was careful not to lose some of the curves of the tail itself and of the apron strings so as to give the whole character that gentle loving feel.
Next is the "Chop" stage - filling in those flat colours. I chose a very deep navy/purple for the fur so that the tan accents on the face and ears stand out really well. I keep each colour on its own layer so it will be a lot easier for the following stages.
I begin adding some volume using a basic cel-shading technique. I determined that the light source would be coming from the top right and hence put soft shadows on the left side of the body and under the ears and just below the apron too. It's a detail but it immediately gives the character a much more 3D appearance.
That's where the true magic takes place! I step further away from these flat shadows and really get into blending. I introduced a texture similar to fur to the chest and tail itself and dedicated a bit more time giving each ear a distinct interior with that delicate, transparent appearance.
Finally, finishing touches... And it's complete!
Reference