Step 1

Open Illustrator and set up a new document 750 by 1000 pixels.

Step 2

Press (E) to select the Ellipse Tool and draw a circle for the head,
make it a little flattened.

Use Pen Tool (P) to draw the beak path.

Select both path and press the Unite button in the Pathfinder palette to
unite this two path into one.

Select Pen Tool again and try to draw a path as you see in the image
below for the second beak path.

Select the head path and press Ctrl + C and Ctrl + F to create a copy
of it. Select the copy and the newly created beak path by shift
clicking on them and press the Intersect button in the Pathfinder
palette.

Step 3

Draw the body using the Pen Tool (P). This step may take a few tries,
till you get the needed result.

Select the head path and the body path and press Unite button in the
pathfinder palette.

Now it’s time to decorate our penguin. Draw a path a path that
intersect him just where he should be black.

Make a copy of the main body path, select it and this new path and
press Intersect button in the Pathfinder palette.

Step 4

Use Pen Tool again to draw the  left flipper first.

And then draw the right one.

Step 5

Draw a small tail path and press Ctrl + Shift + [ to send it back.

To swim and walk penguin needs feet. Let’s draw them.

Also repeat the sending back process on every foot. Draw the second one.

Step 6

We’ve made it to the most interesting part – adding color! Select the
part of the body that should be black, make it no stroke and apply a
vertical gradient from 80% gray to #0A1526 (or any other dark blue).

Select the beak path and also fill it with a gradient (horizontal
this time) from a dark orange (#F15A29) to and usual orange (#F7941E).

Select the main body path and apply a vertical gradient again from
#FBB040 to white, set the Location to 26%. Leave the stroke for now.

Select both flippers and fill them with the same gradient as the black
part of the body and also no stroke.

Fill the feet with the same gradient as the beak.

Select the tail path and apply the same setting for it as for the black
body part by clicking on it using Eyedropper Tool (I) but adjust the
position of the gradient.

Step 7

Press E to select the Ellipse Tool and draw a small circle on the
head. Set the 90% gray as the fill color and give it a 1pt, 20%gray
stroke.

With Ellipse Tool still selected draw a small highlight on the eye.

Step 8

Rename "Layer 1” to "Penguin”. Create a new layer under it and name
it "Background”.

Scale down the penguin, make a copy of him, reflect it and scale down
again. Place the second penguin behind the first one.

Make sure you have "Background layer selected, take the Pen Tool and
draw a random surface under the penguins, fill it with #E1FBFF.

Now draw the sides on the iceberg. Fill them with gradient from
#AAB9BF to # BFCED4 .

Change the position of the gradient every time you make a new side to
add some contrast.

Draw a shadow under the penguins and set the #BFCED4 as the fill color.

With the newly create shadow selected go to Effect > Blur >
Gaussian Blur and set the Radius to 7px. Hit ok.

Create a rectangle using Rectangle Tool (M) and place it under the
iceberg sub layers. Fill it with #7DA3AA.

Add some detail to the water.

Step 9

Draw another rectangle for the sky and fill it with gradient from
#E3F4FA to white.

Draw a circle (the sun) and fill it with FFFAEF.

Select the sun path and Go to Effect > Stylize > Scribble and
enter these settings:

Then Go to Effect > Stylize > Outer Glow and enter these settings:

Draw some water drops on the iceberg.

Final Result