It's looking really nice, Kooky. To be perfectly honest, I'm kind of at a loss when it comes to color too. For more toonish drawings such as this one I usually just cel-shade.
However, if you are going to keep with this method then I suggest being a little more bold with the shadows. You've figured out your light source, which is good, but there are certain places where your darks should be..really, really dark. The folds in his shorts, for instance. Light and shadow help convey form and texture, and right now the shorts look like they're just a blue part of his body because they're shaded in a similar way. I'm assuming they're denim shorts? If this is the case, make sure to not over-do the wrinkles, as the material tends to be stiffer than cotton or silk and therefore bunches in more blocky shapes.
As for the fur, keep in mind when shading that the surface covering his body isn't smooth and rounded like our skin, it's more irregular. The shading would have to reflect this, putting jagged shadows and highlights in here and there.
Anyway, not sure if that helped too much, but those are my two cents at least. Good luck!
(edited for typos)
"Wasting time like we've all the time in the world."