Facemakr

Definitely check it out. - Appolicious / AppVee Facemakr is a clever toolkit for making faces & avatars. Its intelligent multitouch controls and vast number of parts make it ideal for creating unique high quality faces, quickly.

"The genius in Facemakr is that it lets you customise your faces to an infinite degree." - T3

Here's a run down of Facemakr:

Multi-touch scale & rotate from over 600 parts for detailed Avatars.
Position and color parts like: eyes, hair, ears, hats, piercings etc.
Save faces.

"I recommend Facemakr for budding avatar artistes out there, it’s easy to use and comes with a complete feature set and robust graphics engine." - Nine Over Ten

"I have done a number for my family and its pretty darn good!" - app.itize.us

Facemakr comes highly recommended as an essential part of anyones app collection.