Fleecy clouds.

Do you want to know how to create a realistic fleecy clouds? Then this tutorial is for you.

Step 1.
Create a new 450X450 pixels document with a blue background. Create a new layer (Layer > New > Layer). Choose Brush Tool and use it like shown on the picture 1.

I used "Waterwisps" brush. This brush is non-typical and I took it in the Web.

Step 2.
Then choose the Rectangular Marquee Tool and create a rectangular selection on top of a document.

Apply Edit > Transform > Warp and stretch this selection to get something like that.

And that's it.