Yes...this is a bit blurry...but the blocky nature
of the tiny original made that the better trade-off
in my opinion.
Think of it as a soft-focus portrait. :)

This is a sized-down version...after I up-sized the tiny original.
-Gausion blur
-Unsharp mask
-Manually cloned over the worst of the blocky portions at about 25% opacity
-Curves/Levels adjustment
-Blurred the floor
-Cloned out the portion of another cat in the upper right
-Cropped right side slightly
-Feathered in a black border and added dark red hard border
-Manually improved sharpness of pupil just a bit