I used a bunch of bits and pieces along with some liquefying and free transforming on this. So I started out with taking the eye of the dog and then I liquefied it.
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Here I liquefied the eye to form a head for my bird
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next I cut out the nose area of the dogs snout area
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Then after a bit of liquefying I free transformed it into a neck and shoulder area
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Next I used a lighter part to make a wing then just duplicated the wing areas and formed them in to make a body and duplicate the wing and free transformed it to bring out the wing more
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Here is the duplicated wings with some brightness and contrast added and then some burn tool
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next I used this area and liquefied it to make the tail feathers area and duplicated them a bit for the bottom chest portion of the bird
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I used this piece to make the legs on the bird
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then I used the liquefy tool to pinch it in a bit and then once done I stretched it up a bit more and thinned it out in the end... here I gave it a bit of a bevel on the leg
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then duplicated the leg and set it under the body of the bird
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I chopped out this part as it looked to have the shape of a nail or claw
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I then did a bit of more liquefying and erased parts around the edges to give it a claw look
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and very last I chopped out this portion of the background rug and took one portion and stretched it up to be thin and gave it a drop shadow for a top and then duplicated it for the bottom half and the third piece I just stretched up ward to give a nice pink background and then added in the grass with some grass brushes