1. Background: Load paper texture http://www.sxc.hu/browse.phtml?f=view&id=507075 , select white border with magic wand and delete.

2. Make your Foreground Color #bd9758 and your Background Color#743e00.
a. Hold down the Ctrl key, and click the Thumbnail of the Paper Layer to select the paper shape.
b. Create a New Layer and apply a Radial Gradient about 1/3 down from the top, from the center sideways to the edge of the paper.

3. Create a New layer, and select the Rounded Rectangle Shape tool, 45px corners. Drag out a rounded rectangle in the center area of the paper.
a. From Paths Palette, convert the path to a selection
b. Invert selection (Ctrl+Shift+’I’)
c. Feather the selection 100 px
d. With the Eraser Tool, 50% opacity, select the Rough Round Bristle Brush 100px (enlarge to130px), and erase over the entire layer without lifting stylus if using a tablet, or without releasing the mouse key if using a mouse. Repeat a 2nd time, erasing only the selection area outside the center. The 3rd time only, reduce the opacity to 25%, and erase along edge of paper and corners, also the center area of the paper, which is outside the selection. The feathering will allow you to remove some of that area as well. Deselect.
e. Change the Layer Mode to Screen. Do not worry if the center edges look harsh, they will be covered by the portrait in the next step.

4. Take the portrait image you want to use (* http://www.sxc.hu/photo/963739 ) , extract it from background and place it on top of paper layers, resizing it to fit with Edit>Transform>Scale. Hold the Ctrl key and click the original paper layer thumbnail in the layers palette, invert the selection, and with portrait layer active, hit the delete key to remove excess overhang of portrait.

5. Under Image>Adjustments>Levels, move the center slider until the midtones are fairly balanced (I used 156 for this image).

6. Duplicate the portrait layer, click ‘X’ to invert the Gradient colors so that you have a Dark Foreground, Light Background. Apply Filter>Sketch>Graphic pen to the portrait, with the Light/Dark Balance at 50%, Right Diagonal stroke direction, and the Stroke Length 10px. Click OK. Change the Layer Mode to Overlay, reduce the opacity to 30%, and turn off the visibility of this layer.

7. Go down to the original portrait layer, click on it to make it active, and apply Filter>Sketch>Halftone, with a dot pattern, size 1, and density of 15. Click OK.

8. Turn the visibility of the Graphic Pen layer back on and click the layer to make it active. Hit Ctrl+’E’ to merge it with the halftone dot layer below it.

9. Since the portrait is now a bit too yellow, go to Image>Adjustments>Hue and Saturation and choose Edit: Yellows from the box at the top. Adjust the Hue -3, the Saturation to -25, and the Brightness to -12. Click OK.

10. With the Eraser tool still set to 25% opacity, gently erase along the bottom of the portrait to softly blend the edges with the background. Go to Filter>Noise>Median, 1px and click OK to gently soften the drawing effect.

11. Create a New Layer
a. With a small, soft edged round brush shape, at about 27% opacity, sample color from the light portions of the background and paint the highlighted areas of the face: The forehead, below the eyebrows, tops of the cheeks under the eyes, slightly above the upper lip, the chin, the neck, and other areas as needed. Adjust the colors and brush size as needed to lighten the areas but do not lighten drastically.
b. To smooth the edges, go to Filter>Blur>Smart Blur, and with a radius of 7 px, and a threshold of 30 levels, click okay. This will blur and soften what you’ve painted.
c. After you’ve adjusted the skin highlights, carefully add some highlights to the hair, sampling from the skin tones. Increase the opacity to 37% and again using the lighter portions of the background, paint the whites of the eyes and the light specular in the iris. If your portrait image shows teeth, lighten them the same way. Do not over lighten eyes or teeth.
d. Sampling the darkest portions of the portrait, gently darken the eyelash area of the eyes, the irises, the mouthline, a few strands of hair, and any other areas you want to accent. If the edges are too harsh, use the Blur Tool, with the strength set to 40% and the Sample All Layers box checked to go along the edges and smooth them.

Save your work, you’re done!