This is a very sweet candid that works wonderfully as a casual snapshot, but which suffers somewhat from some focus issues. As has been mentioned in the other comments, the focus appears to be forward of the subject, with the leading edge of the jack-in-the-box (and perhaps the very front of the child's hair) being in focus, but with the child's face being a little soft. The level of noise reduction used also contributes to the soft, somewhat smeary look of the photo.
Compositionally this is pretty good, but could have been improved by moving slightly left and perhaps getting even a little lower so as to bring the subject more onto the plane of the camera (and to avoid the red foot near the top-left of the child's head intruding on the scene).
The warm colors work well for the shot, and this is a case where color correction would likely have detracted from the image.
ROFL @ your title! I've always found jackgeorge in the boxes to be such creepy toys for kids. Kind of like "oh, lets see how much this scares the little one". LOL! Love her outfit!