First, I drew and colored a picture of him and scanned it onto the computer.
When I got it on the computer, I drew lines on it so I knew how to color it. (The lines are on a separate layer.)
After I did that, I used a grass brush to draw the base coat of fur. (This was done on a layer just under the lines.)
I then used the mouse to draw the main fur that you can see on a layer above the one in the above picture. Unlike the base coat, I had to make sure it went the right way.
To finish off, I blurred the fur so it looked more fuzzy, put shadows and highlights on the head, and I added smaller furs and stuff around his head. After that, I added grass with the grass brush and made the sky.
I used a picture as a reference. The program I use is Photoshop CS4. For someone who doesn't want to buy Photoshop, my advice is to download a free program called GIMP. Though not nearly as good as Photoshop, GIMP is a good program to experiment with.