I know how you feel about yourself in pictures...I think most of us do

The reality about retouching portraits I think is that unless it is a fashion/glamour shot, you should not be able to tell it has been retouched, and here you can. Less is more. I would not bother with changing face structure at this point. Start by practicing getting rid of blemishes and minimizing bags/wrinkles. Don't necessarily eliminate bags and wrinkles, because it may be too obvious and people look really different without them. As far as makeup, I'd say there's a little too much blush, and it's a bit bright. Apply digital makeup the same as regular makeup....it should contour the face and be subtle. Above all, keep practicing, you will get it! We learned by watching lots of tutorials and using the methods we found easiest.
P.S. Avoid using flash as your only light source and that will help a lot. Take photos in natural light, but not direct sunlight and you'll have an easier time retouching it.