I've been asked when making my pencil works how I achieve the look that I do. I know photoshop tutorials have helped me, so I thought I'd give back, so to speak, and make a tutorial of my own. I prefer Prismacolor pencils, as their high clay content makes them perfect for blending colors together. Cheap stuff like crayola will be harder to achieve this effect with, but it can still do it, to a degree.
This is, of course, not the only way to use color pencils, or even the right way necessarily. It's just the way I do it.
I used to use black for shadows, then one day started using colors for shadows, and it makes a big difference!
Here's one from when I used black to shade:
And these are drawings I made using the method in my tutorial: