Step #1
Draw an oval.
Step #2
Draw very small three circles.
Step #3
Draw top right side outline of the oval.
Step #4
Draw bottom left side outline of the oval.
Step #5
Draw bottom right side outline of the oval.
Step #6
Draw a horizontal line to cut the oval.
Step #7
Draw several diagonal lines on upper portion.
Step #8
Draw several diagonal lines on bottom portion.
Step #9
Draw outline for the body of caterpillar.
Step #10
Make several small shapes inside the caterpillar's body.
Step #11
Make necessary improvements to finish the drawing.