To edit the nodes, we first have to right click the shape and 'convert to path'. After converting, select the southernmost node with Pen tool and drag it upwards to begin dividing the ellipse into 2 legs. You'll end up with sort of a boomerang shape at this stage.
Right click the same node and change Node Type to Cusp. Rotate the node handles so they point down. The shape should start looking more like the legs shown in above image.
Add 4 more nodes to shape the bottom of legs (see red dots above for node placement). To add a node, use Pen tool, Edit Mode. Hold down Ctrl key while hovering over line segment. When +ADD appears, click to add node.
Pull top node up until it's underneath the head. Position all nodes as shown in above image. Change the top node and all bottom Node Types to Cusp. Rotate handles to further refine the body shape. All node types should be Cusp except the 2 near the waist. Change those to asymmetric to create a nice gentle curve along the sides as shown.
