Which filter should I use to achieve this effect?
I have applied the dry brush effect on my watercolor-like image. But cannot get the smooth edges like the one above.
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It looks like the initial example was posterized. I'd suggest on your image to: 1) apply slight guassian blur 2) posterize filter – DA01 Oct 30 '15 at 16:32
You're in the wrong application. Not that it can't be created in Photoshop but that was most likely created in a Vector Graphics Application. If you have the Creative Cloud then use Adobe Illustrator and either start from scratch or could just load your progress so far and Image Trace it:
If you don't have Creative Cloud then Inkscape has some auto trace feature as well but I've never used it to know how well it works.
