Go from
this to
this in 10 quick steps. PSP8, easily translated. (I think)
1. Start out with your picture of choice. I'm feeling oddly narcissistic today, so I'm using a picture of my eye. :P
2. As is standard procedure, crop your picture to a workable size.
3. Since I obviously wasn't blessed with perfect skin, I did a bit of editing. I do this when the picture is still at full size because to be honest, I'm horrible at it and resizing hides my errors. :3
4. Resize your icon to 100x100, then sharpen it. Ooh, fancy.
5. Using the Freehand Selection tool (Point to Point, Feather: 1, Smoothing: 0, Anti-alias checked), select the iris.
6. Go to Adjust » Sharpness » Sharpen More twice. Yes, I know it'll look weird, but you're going to have to trust me on this one.
7. Make a new layer and flood fill your selection with the color of your choice (I used a light blue, #5988FF). Set this layer to Hue (Legacy), 100%.
8. While the iris is still selected, go to Selections » Invert (CTRL + Shift + I). Make another new layer and flood fill it with Black (#000000). Set this layer to Color (Legacy), 100%
9. If you want, add some text. I used the font Ketchup Spaghetti, size 11, color #0C2157. Set this layer to whatever mode and opacity you think works. (Mine's set to Normal, 50%)
10. Finally, make a new layer and put a 1px wide black (#000000) border around your icon. Set this layer to Overlay, 100% and voila!
Any questions, comments, concerns, or examples welcomed. :)