The following images show where I have placed the seam lines. There are many different ways this can be done, but you have at least one example here. Some seams are hard to see, so to be clear: there is a seam going all the way around each ear where it joins on to the head, there are seams that go around just inside the lips, nose and eye balls and a seam that runs around the hand to each side of the wrist that splits it into a top and bottom UV sections through the middle of the fingers.

Step 3: Minimise stretching while having a recognisable map

Our next step is to unfold each of the sections we have specified. Select a vertex on the section on the 3D model that you want to unfold. Go to the UV map window and press F12 to change to UV select mode.

From the menu of this window go to Select > Select Shell. Press W on yor keyboard to change to move mode. Shift this section of UV coordinates away from the rest into a clear area. I like to arrange all the sections into a position that generally represents where they would be on the 3D model because it's easier to keep track of what sections you have completed so far (shown as the last image in Step 4).