Ecking Crew's House of Noob

[Baegal]

Most of the shading on your edit doesn't make much sense. You're shading the head as if it were a circle, and not a sphere.

Anyway, I thing GG has somewhat an idea of shading. It's just the colors are a little jarring.
I like the design-it's simple and effective, although maybe making the shaped a little more interesting would help (having the torso taper, making the arms like tesla coils, etc.). It's just the pose is very unnatural and stiff. I understand it's a puppet, but it can still have some life to it.
Usually, making a frontal sprite almost perfectly symmetrical is a big no-no (it can work sometimes, but most of the time it looks lazy and boring).
Is the puppet operated by strings? If so, why not have the head dangle more?
Not a bad start! But work on the composition a little more before you get into colors.