How to create a Smiley!!

Start by creating an ellipse using elliptical shape tool.

Double click the layer to open layer style window. Apply settings as shown.

Create an elliptical selection using elliptical marquee tool. Create a new layer. Apply a black to white gradient in linear mode. Change the layer mode to screen. Keep this layer on top always.

Create an ellipse using elliptical shape tool.

Double click the layer to open layer style window. Apply settings as shown.

Create an ellipse using elliptical shape tool. Apply some bevel&emboss layer style. Apply some glassy look as we did on the main face ellipse.

Duplicate all eye layers. Press Ctrl+T. Right click and select Flip Horizontal and place on the other side.

Ctrl+Click the face layer thumbnail to get the selection. Create a new layer and apply B&W gradient in linear mode. Create a big elliptical selection using elliptical marquee tool.

Press delete.

Double click the layer to open layer style window. Apply settings as shown.

Change the layer mode to linear light.

Create two dots for the nose and create two triangles for the teeth using polygon shape tool. Warp the triangles to get a curve inside.

Using pen tool create a shape as shown below. Apply same layer style as we use for the face.

Create an ellipse using elliptical shape tool. Move this layer below all the layers in layer order in layer palette.

Select the neck layer. From layer menu select layer style>>create layers. Select and merge both the resulting layers. Using eraser tool erase the bottom right portion.

Using pen tool create a shape as shown below. Apply same layer style as we use for the face.

Double click the layer to open layer style window. Apply settings as shown.

Finish the smiley by creating tail shape using pen tool. Apply same layer style as mentioned above.