For this entry we'll look at how to apply a cartoon-like shader to your object. To demonstrate this, we'll start off with a sub-surfed, smoothed Suzanne.
First step is optional, which is setting the Environment Lighting in the World options. This just helps make the effect of the toon shading nicer (less black shadows), but it's not necessary.
The core of creating the toon shader is in the material properties. Blender has a specific set of Toon settings for both the Diffuse and Specular attributes of the material. Play with the settings for each of these (iterate through renders) until you get the desired effect.
The final render should be a nice smooth cartoon looking render with a noticeable drawn outline.
A version of this type of shader is applied very effectively in the Naruto Ninja Storm video games.