Faux Pencil Effect developed by Tom Caldwell, Coff Harbour, Australia.
Basically Tom’s method involves desaturating the image, then adjusting brightness/contrast to +150 to remove image detail, then processing the image with Lucis Pro 6 to bring some detail/graininess back. Finally you clean up the faux-pencil image using Photoshop (dodging, burning and/or erasing). Tom also provided a second method that I prefer. Before you adjust the brightness of the image to +150 you process the image with Lucis to increase the detail. Examples of this variation are shown after the first example. I also created this as a Photoshop Action called Technique 8. After running the action, use level adjust on the topmost layer (labeled level adjust) to get the best contrast.
Click on any image to see a high resolution version.
1. Original Image by Tom Caldwell. Carol Furtado, Lead Female Dancer, "Merchants of Bollywood" Dance Spectacular.