pointblankdarcy asked about this icon at the Ask The Maker, and since I had the psd, I decided to make a full tutorial out of it :)

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Difficulty: To be able to follow this, you need to know your way around PS with the basic things like how to copy layers, make layer masks and change the blend modes. The masking takes a bit finesse so it's probably not the first thing you want to try if you just picked up iconing a week ago, but other than that there shouldn't be anything very challenging :)
Translatability: To programs that have Gradient Maps

I recommend you try this sort of technique with lots of different colors, characters and textures, cause it's a fairly flexible method, but the textures etc I used are provided here too.

Hope this was any helpful! This is my first real tutorial so idk if I did anything right :') I'm sure some of these steps aren't well explained so I'd love to answer questions if you have any regarding this tut. Or, if you have other questions about other icons, just go to my thread at the Ask The Maker :)