After allot of research, trial and even more error I made my first custom Lego minifig. This is Farouk, the fruit seller on the market. You remember he almost cut of Jasmine's hand for stealing. He appeared in a few series episodes but didn't get much screen time or was important for the plot.
I bought Avery sticker labels just for PSP but it turned out the type I bought had no template on board. So I decided not to border with sticker and just tape the cut out image onto the torso. Next time I try photo paper to see if that gets better results from my new printer.