Lies. It's photoshop. You can't shade that well without making each pixel separately.
It's Paint. Outlining is pencil tool, done at 6x and fine tuned at 8x. Body shading is 12 sq. pixel circle brush tool tool, the 4 sq. pixel square brush, with fine tuning and minor dithering with the pencil. I hand selected each color used. The arms are shaded pixel by pixel with the pencil tool.
On another note, I should really start posting more often. It's definitely been too long.