How come PS does not recognize the face of the standard PS puppet from CH (using face-aware liquify)? Its not the color of the blue face, I changed that without result (getting bue in the face). If I draw some very childish face, even that is recognized as a face.
Sounds like you need to upgrade - the "blue face" guy is no longer in the app, he has been replaced by some newer templates.
I'm not very familiar with face-aware liquify, but note that most CH faces are broken into several layers and groups, which might break things up too much to detect correctly.