1) Circle the area to enlarge with the lasso tool.

Use a Feather of
50.

2) Click Filter-Distort-Spherize- +25. That should do it.

for breasts, liquify is a wonky tool at best. If you aren't careful, you will
muck up backgrounds, wardrobe, etc.

There are several ways to enlarge boobs, liquify should be your last
resort.

I find the toggle tool to be one of the cleanest ways:

using your polygon lasso tool, select around the breast (one at a time),
leaving a little extra skin in the selection. Feather your selection on a light
setting, and make a new layer from your selection.

Then, activate the toggle tool by hitting ctrl+t, and drag the pointers. If
you make the breast too large, dont fret, once you hit enter, you will be
prompted to keep the selection alteration or to void it. Alternatively, just
hit ctrl+alt+z if you dont like the change.

Now, use the eraser tool to clean up the edges, exposing your
background layer around the breast - to an invisible perfected image.
Unlike the liquify tool, which can often leave telltale signs, such as
external/background distortion/blurs - the eraser tool allows the viewer to
never suspect the image was tampered with.

Another option you can consider is minimizing the waist on the model - if
she has a little bit of junk in her middriff, it could give the illusion of
smaller breasts.

My favorite tool for middriff reduction is the shear tool..using the same
steps as above (poly, feather, new layer from selection), activate the
shear tool by going to your filter menu in the PS main menu, hovering
over distort, and selecting shear. Click on repeat edge pixels, and like you
did with the toggle tool, drag this time, only the center of the line inward
to the midsection.