Perhaps you're already familiar with Jayme McGowan, an artist who is becoming quite well-known in the paper cutting world. If not, you're in for a treat! She creates delightful dimensional scenes by translating whimsical illustrations into pieced paper figures.
I'm especially fond of Jayme's fetching collection of clothed animals. Here's a scene that bustles with activity, inspired by Roald Dahl's Fantastic Mr. Fox.
Jayme titled this next one Ruler of the Wild Things, based on a scene from one of her favorite picture books, Maurice Sendak's Where the Wild Things Are.
First she sketches and colors the figure she has in mind...
and then brings it to life with paper, scissors, and a craft knife. Check out the details of Hobo Bear's outfit... the rich textures, the tiny loop that holds a cup, the stitching on his jeans, etc., etc.
Follow Jayme's latest projects via her blog, Roadside Projects; she also has an Etsy shop of the same name. I enjoyed this interview in which she talks about her work process.