Swivel flaps so former edge now aligns with the underlying edge.
Existing folds in the flap should be inside. Open up a little.
Reverse the two slanted folds in the upper layer. Close again, now with the flaps
inside, but otherwise in the same position as before.
Fold the beak down.
Eyes
Fold eye flaps in horizontally...
...and back to the edge.
Fold them to vertical (you may just see the white from the double edge in the
picture).
Open and squash eye flaps.
Fold eye top down.
Fold up again, leaving about 2 mm white around the "pupils" (owls are night
creatures with big pupils). At this point you may optionally put the bottom of the eyes inside the
pockets.
Body
Fold body sides back inside.
Here is how, seen from the above...
...and from the below.
Wings
Turn over, foot end up.
Fold the edge towards the foot end.
Turn over.
Fold one wing in front.
Put wind below eye.
"Ears" or head feathers
Turn over.
Fold the two corners as high above the eye as the can.
Turn over. You may stop here...
Body shape
...or blow a bit of air inside (blow in the top of the head)...
...or pull out the foot end to a square. My variation, and the one I like: It
shapes the body, and enables the owl to stand.