Next step: a fairy! A fairy consists of several shape layers, with layer effects applied to each layer. Here is the shape of the body (made with Pen tool).
 
Rainbows - making of - Step 33
Add layer effects: - inner glow (white, overlay 30-40%) - Gradient overlay (black-to-white, radial, overlay 30-40%)
 
Rainbows - making of - Step 34
Next layer: arms. (made with Pen tool too)
 
Rainbows - making of - Step 35
Next
layer: head (made with Ellipse tool (U) and then another shape in Substract mode, made with Pen). Add the same layer effects as to body layer.
 
Rainbows - making of - Step 36
Next layer: hair (behind head layer). Add the same layer effects, but change gradient type to Linear.
 
Rainbows - making of - Step 37