If you go into the hypershade and then select the material that youve painted then goto edit->convert file to texture and then select the option box, you can set up what you want to bake out (colours, shadows, resolution etc)
What I would actually suggest you do is UV map your penguin as the image you make might make no sense when you open it up in photoshop (as the UV's are the 3d points unfolded or flattened like asheet of paper)
"No pressure, no diamonds" Thomas Carlyle