I am not sure if I did everything correctly, but the most important thing is I got a slanting shoulder without rugged steps:
I left the shoulder stitches on holders because I would like to try the 3-needle bind-off as well. Besides the Knitty article, I also found this video from Knitting At KNoon Designs very useful.
erin asked if the Itty Bitty Bears were difficult to knit and sew up. Well, I have never found myself more like Edward Scissorhands than when knitting these bears! Imagine all the dpns with at most 5 stitches on them! The most challenging thing is knitting the "[k1f&b]2 times, k1 all in same st" ... I cheated and employed the help of a steel crochet hook! For sewing up, there are only 2 places to sew up and the rest is just weaving in the long tails of the limbs. But ... yes, it's been fun working on this distraction.