Apply the following demonstrated parameters for the new made layer: Blending Options>Inner Glow

Blending Options>Gradient Overlay

Gradient’s parameters:

Using the last applied instrument, it’s possible to draw a flare on the toy’s surface:

The layer’s parameters: Blending Options>Gradient Overlay

Gradient’s parameters:

Now we shall work with the top part of the toy decoration, selecting for this operation the Rectangle Tool (U) and the color #FFC003

Try to make that small wire ring, reserved for hanging up the decoration. Select for this manipulation the Ellipse Tool (U).

The layer’s parameters: Fill 0%
Blending Options>Stroke