You might want to go back to your second step. Get rid of jagged lines and get an idea of how a real teddy bear looks.
Imagine a teddy bear made out of a cotton/jersey material. It's not shiny and it's one color. Now imagine the direction of light and the parts that light will hit. The top of his head, cheeks (if he has extra fluffy cheeks), nose, top of eyes and ears. Since this is bear isn't made of tin foil or shiny plastic the contrast isn't going to be outrageous, it's fairly tame. Each color from the darkest is only a bit lighter.
Quick side note, contrast just means the difference between two things. Grey and vibrant violet are contrasting in saturation of color/hue. Black and White are contrasting in value. When people talk about contrast they're usually referring to the value. I'm sorry if that's old information
My colors move from a dark brown to a light desaturated yellow-orange. Your color ramps are always just a lighter or darker version of the original color. Adding a little bit of another color to the shading or highlights can really make the piece look more interesting.
I hope I helped, it's a little late here so if I didn't make sense with anything please just tell me. I can't wait to see an upgrade on your bear.
EDIT:
Keep an eye on how many colors yo use. Your last bear has 11, mine as 6.