1. Create a new 300x300 image with a grey background. Use the Ellipse Tool to create a white vector circle. Make sure Create On Vector and Anti-Alias are checked. Width should be set to 0. Press Ctrl+Shift+B to create a selection. Convert the layer to raster. With the selection still active, create a new layer, then go to Effects | 3D Effects | Cutout... Use these settings.

Settings used:

• Vertical = 0
• Horizontal = 0
• Opacity = 40
• Blur = 100
• Shadow Color = Black
• Fill interior with color = Unchecked

2. With the selection still active, go to Selections | Modify | Contract... and contract the selection by 50. Press Ctrl+H to Feather by 1. Create a new layer then Flood Fill with the following gradient:

Settings used:

• Gradient = Duotone light blue (or another gradient of your choice)
• Angle = 0
• Repeat = 100
• Style = Radial
• Invert = Unchecked
• Horizontal and Vertical = 50

With the selection still active, duplicate the current layer. Go to Effects | Artistic Effects | Glowing Edges... and use the following settings:

Settings used:

• Intensity = 3
• Sharpness = 20

Next, go to Effects | Illumination Effects | Sunburst... Press the Reset button. Now, set both horizontal and vertical to 75.

Gaussian Blur by 2 and set the layer to Luminance.

3. With the selection still active, duplicate the current layer. Change the layer to Overlay with an opacity of 75.

Create a new layer and use the Cutout filter with these settings.

Settings used:

• Vertical = 0
• Horizontal = 0
• Opacity = 100
• Blur = 50
• Shadow Color = Black
• Fill interior with color = Unchecked

4. With the selection still active, create a new layer. Go to Selections | Modify | Contract... and contract the selection by 35. Flood Fill the selection with black to create the pupil.

Press Ctrl+D to select none. Next, use the Ellipse Tool to create a small white circle for the glint, as shown in the above image.

5. That's it! Optionally—to add the highlight—select the Ellipse Tool. Set the background color to the following gradient:

Settings used:

• Gradient = Black-white
• Angle = 0
• Repeat = 0
• Style = Linear
• Invert = Unchecked

Create an ellipse on the upper half of the eye, as shown in the above image. Then set the layer to Screen.

Here's lookin' at you kid.