So here is the girl. Drawn with the Pen Tool, very cute :)) Basically it is all Pen Tool, plus some Burning to make the body look curvy :)
The dress is made out of the ribbon from the source, layer style then changed to Luminosity.
Her wings were then made out of the circles in the ribbon, with LOTS of layers and modes mostly being Pin Light and Linear Light. The glowing fairy dust around her - like the wings, but only two layers and a little more glow :)
step 2 of 3
The house is made entirely out of the source image. Warping and transforming did the job :) The windows became lit thx to the layer mode being changed to Overlay plus a bit of glowing in the Blending Mode.
Hue/Saturation then changed to suit the night scene, a bit of Burning Tool on the corners to support the illusion of light coming from the inside of the house.
step 3 of 3
Well, these are the standart PS brushes, which I used to create the trees and the grass. Set two colours and tick Scattering in the Brushes palette to make a more interesting effect.
p.s> the tree trunk is made from the source image as well