Cartoon Clouds

In this tutorial I will show how to draw some really nice cartoonish clouds.
Open a new "document", 480px x 320px:

Opening a new document

Use the paint bucket tool to fill the background with a nice blue color. (I used #3f72c6)
Select the Elliptical Marquee Tool:

The elliptical marquee tool

And make sure you are using these settings:

The elliptical marquee tool settings

And now for the "fun" part:
Select an area like this:

Elliptical selected area

Choose the gradient tool:

The gradient tool

And use these settings:
(Press the D key to select the default colors.)

The gradient tool settings

Now, let's imagine that the light (sun) comes from the top left corner of the image. So we want the cloud to be lighter at the top left and darker (shadow) on the bottom left.
So while the circle is still selected, use the Gradient Tool to fill it like this:

How to draw with the gradient tool

That should give you something like this:

One gradient-filled circle

Repeat these steps and make many small gradient-filled circles like this.
Remember to draw the circles from the top and work your way down until you get something like this:

Alot of circles

For the final step, we're simply just going to add some simple blur:
Filter->Blur->Gaussian blur...

Adding gaussian blur

And that's it!

The final result

Just play around with this and you'll get great results.

Another result

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