This is the second picture that I've drawn and colored completely on the computer. I think she turned out okay. I played around with gradients a little, used a tutorial for the light and had some trouble with the gauze arm-things, but it's not bad.
Photoshop. I make separate layers for the different colors and the shading and lighting for each color. I like to lineart with pen most of the time, but when I feel like it I'll lineart on the computer.