Okay, so first of all, choose one skin color and one hair color. This is just an example on how you can make your hair, a hat layer with some extra hair will be added after this. *NOTE* The eyes will be moved 1 pixel lower after this. These were too high!

So now after we have our face, we will get one darker shade of our skin color, and do what is done above. As you can see, we place darker pixels under the hair. This is because hair casts a shadow on the skin since hair is on skin. *NOTE* I made the eyes 1 pixel lower and added a mouth with black. The mouth does NOT have to be black, you can change it!

Alright, so now we are on to the hat layer. In the hat layer we add some hair to the front of the face to make it look better. We also add some ears.

Now we have placed our darker hair pixels. We also added some lighter skin tone pixels under the eyes. We also added one light skin tone pixel on the corner of the ear.

Now we have taken our light hair color and made some highlights. This can be changed, this is just what I prefer.

Place 2 tiny little pixels. heeheuheu

Ta-Da.