Step 1: Create a new image with width of 600px and height of 400px.
Step 2: Place any image that you want to into this new image, like the one below.
Step 3: Create a new layer and place this layer behind the image you have placed. Fill this new layer with any gradient color. (I have chosen blue and white.)
Step 4: Select Filter -> Distort -> Twirl. You will get a window like this,
Step 5: Set the numbers as shown in the figure in your window and click OK. You can see the changes in your image as the one below.
Step 6: You are almost done by designing a frame for your image. Now just to add some more effects to it select the baby image and create a drop shadow using the blending options. See the figure below once the shadow is dropped.
Step 7: That’s it, you have done. If you feel like adding some more creative work in the photo, just add an image that I have added here.