Yoshy's Sprite Sheets

[YoshyRyuDCC]

Light source from above is almost pillowed, and a character is mostly not right underneath the sun.
Here the 1st is yours, I re-did the shirt only, and the panst is pillowed.
(And if he is underneath the sun, the dark colour at the T-shirt sould be start with a dark colour, since his head gives some shadow)

I think your definition of pillow shading is a tad off, but I will agree that he should cast a shadow on the shirt and jacket. Since the Light Source is coming from above, kinda like The Mario and Luigi Super Star Saga Sprites. I just added more colors and more shades, so I can hardly call my style of shading pillow shading, because the Basic definition of it means the light source would be coming from the screen where you are viewing the sprite. If the lighter shades are going upward, downward, to the left or right, that means that the light source is definitely not coming from the screen.