Fur is fun but tedious. I made a rough sketch first and added the furry lines over them. The outline did not really disturb the end result so I left it there.
A Tanuki is a Japanese raccoon dog. I tried to get the dog likeness (the snout and posture) and the racoon likeness (the fur around the eyes) to stand out. For this drawing I used a comical reference of a blobby Tanuki which both made it easy (as the shape is undefined) and hard as there is not much of a racoon shape to emphasise.
For its eyes I chose a cartoony stare which I liked more than realistic eyes. It makes the face stand out more.