Paint Shop Pro. I used version 7.04 but if you are familiar with PSP, you should be able to convert the tutorial without problems. You can download the latest PSP version demo here.

My selection files. Place these in your PSP selections folder (or any location of your choice).

My seamless fill pattern.

You may download all of my materials here.

Step 1. Open a new image 250 x 550, white background.

Step 2. Add a new layer. Load selection 1 (go to selections>load from disk - then navigate to the location you placed the selection files). Flood fill with #FFE2D9. Float the selection (go to selections>float; or, you can use the keyboard shortcut "Ctrl+F).

Apply a cutout using the settings in the screenshot. Repeat the cutout but change the horizontal and vertical to -1. (Note: Each time below when I tell you to apply a cutout, you will follow this same procedure).

Step 3. Add a new layer. Set your foreground color to black and your background color to null. Choose your draw tool, freehand line. Draw some lines on the hand for the fingers. Lower the opacity of this layer down to about 20. You should have something similar to this.

Step 4. Add a new layer. Load selection 2. Flood fill with babyfabric1 you downloaded (set the size to 80 and the angle to 355). Float the selection. Apply cutout.

Step 5. Add a new layer. Set your foreground color to black and your background color to null. Choose your draw tool, freehand line, size 1-2. Draw some lines on the body to add a bit of definition. Lower the opacity of this layer to about 15-20.

Step 6. Add a new layer. Load selection 3. Flood fill with #B6B8CA. Float. Apply cutout.

Repeat for selection 4 and 5.

Step 7. Add a new layer. Set foreground color to black and background color to null. Choose your draw tool, freehand line, size 1. Draw some lines to define the sleeves similar to mine. Lower opacity to about 15-20.

Step 8. Add a new layer. Load selection 6. Flood fill with #FFE2D9. Float. Apply cutout.

Step 9. Add a new layer. Now we'll work on the face and hair. Set your foreground color to black and background color to null. Choose your draw tool, freehand line, size 1. Draw some facial features similar to mine. Lower the opacity of this layer to about 10-15.

Add a new layer and use your freehand line to draw some hair. You can also use the airbrush to spray a little color on the head (set density to about 20 and opacity to about 25). Smudge it with smudge brush. Lower the opacity of this layer to about 10-15.

Step 11. Add a new layer. Set your foreground color to #E7B7CE and use your airbrush to spray a little color on the cheeks, forehead, chin, and lips. Use your retouch tool/smudge brush to smooth the color out.

Step 12. Add a new layer. Load selection 7. Flood fill with #FFE2D9. Float. Apply cutout.

Add a new layer. Set your foreground color to black and background color to null. Choose your draw tool, freehand line and draw some fingers. Lower the opacity of this layer to 15-20.

When you're satisfied with your creation, save as a master psp file with all layers intact (that way you cango back later and change things if you wish, such as the color of the baby's outfit). Then, hide your background layer and merge visible layers.

And that's it, all done! I hope you've enjoyed the tutorial, and as always, please let me know if you have any problems ;o)