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Between those 2, definitely nb 1 !
i do like the naive style... maybe a thicker handle would suit the rest of the rest of the design better ? I'd also move the 'smoke heart' a tad off center or give slight inclination to the cup, something to give a little more dynamism since your objective includes 'funky'.. last thing is, I'd lose the shadow...
I like the first one. Maybe a darker brown cup, the light brown color seems bland, rather then rich and warm.
I agree with these suggestions:
Top design Thicker handle yes. Just a tad gives balance to the big cup.
And the moving the steam over not so centered.
Add saucer but make sure the cup "sit" on the saucer and does not float on the saucer.
The brown on the cup could use some tweaking.
Nice very nice.
Overall I like this piece. Adding the color definitely improves it. The steam forming the heart is a nice touch. My main suggestion would be that the lighting on the cup is from the left, yet the shadow is as if the lighting is from the top. I would be tempted to remove the shadow altogether as well or else make it stylized with a hard edge or harder edge like all the other components. You might try dropping the outline on the type and bumping up the brown darkness to get the type contrast you need. Overall looks good
They look good, now I would add the saucer to the first concept and use that.
thanks Caro...!!!