This is watercolor outlined with a fine pen. About 4 or 5 years ago I took some pictures of my little sisters in costume to use for art. So I've been wanting to use them forever and I finally used one and I was able to do it for a class! I have found more success with my watercolors by working out my reference ahead of time in photoshop so that I have a very clear idea of where I'm going, a necessity since watercolors are not very forgiving. I really like how the forest in the background turned out.
Here is the original photo I took. I didn't like the trees, they were too small so I found a better forest and created the reference I wanted in photoshop. As you can see, she also is not wearing a beautiful red cape. I looked at a lot of cloaked individuals to make up my own. And then of course I needed a wolf to stalk my little girl. My final photoshop reference is below. I don't worry about it looking perfect (she's not perfectly cut out and the cape isn't painted photo real) but it needs to show me that my final piece will be convincing.