At the risk of offending member of this group, I have to admit I use PSE, not PS because it does everything I want. However, before PSE, when dinosaurs roamed the earth and people still shot film, I used to scan negatives and work with them with an ancient program called Adobe Photodeluxe (the 1998 version). It was sort of the the forefunner of Elements.
I couldn’t get your effect in Elements so I tried is Photodeluxe, which sometimes produces different results the Elements.
Here’s what I tried.
First, I softened it to get rid of jaggedness.
Then I used the Accent Edges filter to start to build the contours Then I used Posterize to enhance the contours and get rid of jaggedness.
I got reasonably close considering I only worked about 20 minutes on it and didn’t do any hand-retouching.
http://www.artisticphotography.us/Boywithballoondemo.jpg I picked this image to see if I could get the contours in the skin tones.
I hope this gets you closer or inspires someone who is better than me to find a way to duplicate the process. Good luck.