to
because i am lazy, i will assume you're already familiar with photoshop :D
01. find image, crop it, yada yada
02. sharpen it with photoshop, then smudge/blur some of the parts so that it's not so pixely (face, clothing, background)
03. create a new layer with an orange rectangular box in the middle of the icon, blur it with gaussian blur (approx 2-3 pixels), and set the layer of the box to "screen". then, create a layer of #DAC294, set the mode to "overlay" and play with the opacity as you like. add layer adjustment (layer > new > layer adjustment) as follows:
shadows -22 +12 +20
midtones +14 0 +26
highlights +17 +15 0
this is usually different in every icon, so play with it as much as you like!
this is what i got:
04. add a color that looks good with the first color (in this case i chose red), and just kinda brush it over the box. don't forget to check the "preserve transparency" box
05. add text as you like, and you're done! :D
other icons made using similar technique: