Currently working on this:
Originally made this character in Blender using flat planes and a 3D head so I could animate her more or less cutout style:
Lots of little things on the to-do list for the 3D version still (eyebrows, inside the mouth, finishing the shirt, shoes, etc)
Working on another character in the same style here, except in cycles:
Although will probably move that over to Blender Internal because I find the toon shader easier to work with there.
Any tips on getting textures to stay crisp/minimize stretching? Stretched textures probably destroys the illusion of 2D the most.