Once a concept sketch and line art is done, the next step is to choose colors. I use the earlier sketch, clean up a little bit of the line art, and then apply the flat colors.
Here you can see the color palette I chose for this particular character.
The choice of skin tone is usually given in the initial description you come up with – if not, go with your imagination. For the attire, choose the colors based on the type and mood of the character. Gnomes are associated with earthly greens and browns. Also, I took the base colors to be on the pastel tones as that too provided the mood I wanted.
I will post the artworks and other stuff related to project as and when I spend some effort on this – keep yourself updated by subscribing to KalaaLog.com feeds (or using the email subscription).