@tehwexxl0rz: I actually disagree. Giving the character a more roundish head in the dialogue would bring the player more into the game world and make the player more interested in the character.
Buh-what? Dramatic visual discontinuity draws the player
into the game world? Sorry, but that's just plain wrong. Anything that destroys the illusion that the little dude on screen is a
real little dude is bad design (unless there is a clear reason for breaking the fourth wall.) A portrait is meant to
enhance this illusion with detail, not damage it with blatant contradiction.
If the player starts caring about what shape a protagonists head is then the developer has already lost them.
First of all, the developer's intention is irrelevant.
Always. This is a fundamental rule of game design. Everything MUST be communicated through the content of the game itself. If the developer doesn't want the player to care about the shape of the protagonist's head, it's his job not to make it stick out like a sore thumb.
EDIT: Sorry xhunterko, that sounded a bit harsh reading it over a second time... I was just trying to get a point across.

Anyway, here's a color edit with hueshifting and more saturation. I also played around with specular highlights and the glow of the lantern:
