Thanks for the reply Fickludd! You make a very good point about the eyes. As per usual with me, I'm sticking with the palette I got (mainly for continuity between games). Here's the "season 2" palette I'm working with...
To address the "eye white" issue, I gave her some makeup to accentuate her eyes, although I'm not sure a girl her age should be wearing eye makeup lol. Let me know if this looks better
I'm working on a walk cycle, I had to make her legs a bit longer for that, I'll post a gif of that soon
I'll also work on her posture for some of the emotions
This character will indeed be in a alice in wonderland kind of situation. Imagine Little Nemo with a light/dark world aspect to it (dream/nightmare) with inspirations from alice in wonderland, and happy tree friends. This character is has some crazy times ahead of her lol.
[EDIT]
First attempt at a walk animation, I just used little nemo as a reference, it looks... okay I think.
Regular walk
More girly walk
Big thanks!