#1: background layer
#2: top layer (a lighter version of the above):
#3: after applying gaussian blur:
#4: a mask to let the the eyes from the bottom layer to come through; the mask was first painted with black and then gaussian blurred to make the transition between sharp an non-sharp smooth:
#5: a sketch of the effect of the mask on the top layer:
#6: the result (multiplying the blurred & masked image with the background layer):