hmmm, I actually kinda like the dither here. Gives it kind of a noisy pastel look that adds to the ethereal storybook feeling of the piece.
Good work my man, I think the only area that doesn't look so great is the highlights in the hair.
(edit: whops, reading comprehension.)
AIGHT SO, on the topic of hair:
-treat it in terms of clumps, and try to imply overall texture rather than trying to overdetail it. It's a bit finnicky to get together at first, but it helps to sketch out the hairlines so you understand the curves and where the light would catch more. For example, here, it seems light is coming from the left. So, clumps on the left should have the highlights and the bits on the right should be solid color with minimal texture.