Cute. What you can do that would add a nice touch is to first make a copy of the picture, create a new layer, and then drag that layer to the bottom and paste what you have copied. Make that layer invisible while you work.
Next, on the topmost layer (your original picture) mask out or erase the background around the cat's head and then take the smudge tool and select "sample all layers" (the option should be at the top). Then at a very low diameter and strength use it all around the head (dragging from just inside the head outward) to create a realistic fur effect. Play around with the smudge setting until you find something that you think looks best. Then make that bottom layer you created visible again to return the background.
I'm pretty sure you can also blend the pattern of the cat's fur with that of the squirrel's, or even apply it to the entire body. I don't know how to do that off the top of my head, but it may have something to do with setting a layer to multiply.
Let me know how it turns out if you decide to do it!
I made an animal blend too: [link] It's not exactly as cuddly as yours though lol.