I took some screen shots as i was working on this picture for referance.

1) start with the lines (i left the eyes in there because they look cool

2) add in the basic flat colors
*note that you want your white 95% white

3) using a separate layer on multiply, add your shading

4) using the smudge tool, you can add a fur effect and also mess around with some filters and adjustments to get the look you want