>>1016217
And a comparison. My cow is approx 128x128. Keep in mind that characters and animals are not specialty. The eyes are just an image texture with a transparent background, shrink-wrapped the model. Very similar technique with the nostrils. This is unpalleted color. If I were to go for paletted, I would probably make the snoot and the horns the same color.
An additional disadvantage of this technique is that if you wanted to use these models in a nice, prerendered background or something like that for a title screen or loading screen, you would need to alter your shader for those shots, since again, they are totally unaffected by lighting. Not sure that's really a HUGE disadvantage, though. If you want to smooth out the shading a bit, you could add more steps to the color ramp, or change the blending mode. However, I find that having the hard steps gives better shading.
You might even consider adding or subtracting just a bit of hue in your HSV nodes. These will make your shadows feel warmer or colder, depending on what you're looking for. Most game engines will also allow you to achieve a similar effect with post processing, though. Just food for thought.
You could also try to run your Fresnel through a Math shader set to multiply. Set the other argument in the math node to something like 6.0, and that way you won't have to have all of your sliders grouped at the end like in my last screenie.