Thanks Stwelin for the comment. Ambient light makes so much sense to me as the light would bounce off of surrounding objects and reflect into shadows cast from the direct light source, but I would have never thought of it (great help for general pixeling knowledge). I used a hue shift into a pale blue for this ambient light. I calculated the colours by adjusting the hue, saturation and luminosity values in Paint's palette by even amounts between each shade (although I'm not sure that's the best method). Anyway here's my attempt at it.

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Thanks a lot Krut! Much help there. I would definitely like to turn it into a mini-scene, would be good experience. As to your critiques, I have given another edit a shot taking into account your comments on dithering and some of your shading ideas. I would much appreciate an edit from you illustrating your points on the more advanced aspects of shading and light (i.e. the mushroom's cast over the grass) and how I might go about stylizing the lineart as you said. Thank you very much.

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