Originally posted by StreetShooter
I had to do PS work because her face was actually pretty blotchy at that age.
After converting to B&W, create a duplicate layer of the background.
Apply Gaussian blur (about 5 pixels) to the new layer.
Set the transparency at about 50%.
Now Add Layer Mask > Reveal All.
Then just use the airbrush to "paint" those areas which you do not want to be blur (in this case the eyes and mouth. You may have to switch between background and foreground colours (or type "X") in order to do this. You can also undo what you've just done by switching back and "unpainting" the mask.
When you are satisfied, just flatten the layers.