With the model layer turned off as to better see the cloth, I continue adding highlight with white, shadow with a darker blue and smear the colors into folds.
Time to step back and look at the whole picture. With all layers turned on, I decided I didn't like the angle of the rear cloth.
With the rear cloth layer selected and using Edit>Transform (Ctrl+T) I moved the center point of the Transform Box to the shoulder of the model and then rotated the cloth to the left. I made a few sizing tweaks by dragging the edges of the Transform Box in a bit and then hit "Enter" to apply the transformation.
Time to move on and come back to the cloth later so I started creating the ribbon. On a new layer I used a 21 pixel airbrush set at 100% pressure to draw a ribbon around the models leg. Using a small brush I painted in white highlights and dark blue shadows and then used the smear tool to blend them in.
