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then whatever you did, don't do it. It may be good if the graphic style you want to be related to a picture book, but other than that it's wrong.
In general, it looks like you did something to rush on it. Figure out where you want the lighting to come from, and don't use that many shades. Don't go to fast with it, you know what I mean?
That isn't pillow shading. That's just nonsensical gradient shading. Gradient shading only works on cylindrical metal objects, and even then it needs to be done a certain way.
Can't really add too much more to what's already been said. The shading needs work. try limiting yourself to six colors per cloth element. and work on the contrast. Also, make the outline of the sprite match with the clothes.