Definitely a change in the right direction. I think you'll see some gains if you continue experimenting with hue shifting. The skin looks better in the update, but the cloth looks a little too desaturated now. Also look for ways to better unify the palette so you can mix colors around more. For example, with a little tweaking, it might be possible to use darker shades from the skin to smooth out or AA areas of the cloak.
Changes:
Removed most of the outlines. There are several small outlines and partial outlines all over the piece that don't contribute too much. The back leg is a good example of using shapes over lines to render form.
Upped blue in skin shadow and changed the cloth ramp. Exaggerated areas that are in shadows and area that are hit by the light. Distributed the hightlight shade more effeciently as less than 20 pixels where using the shade in the original.
Added 2 buffer shades to the skin to smooth out transitions. Made the light hitting the outstretched arm a rim light. Used some shades from the cloak to AA the rim light. Enlarged the bands around the arm.
Re-textured forhead using the buffered shades. Created strong light on face. Clarified expression. Brightened pupils.
Added toes to rear foot, made front foot larger. (Goes off the image, not good compositionally) Beefed up the front legs knee, added a rim light.
Added one grass shade. Adjusted colors and reworked the texture (sloppily).
