To an extent, you're right. However, to be truly "Pillow Shaded" I would have just incrementally traced the inside of the arm with increasingly lighter colors until I ran out of room. I could have used a darker color for the cast shadows from the shawl, but otherwise, I'm pretty pleased considering this is one of my first works. Actually, no I'm not. The highlights on the hair curls are a disaster. :O

Here is a prime example of pillow shading at its worst.
http://www.natomic.com/hosted/marks/mpat/shading.html

Nice work, I like it! Just one comment though, it seems you have "pillowshaded" the arms and legs. Don't mind my comment too much though, I'm a noob... ttyl!