Looking at the blank for the body, I can see the angle will leave the arms too close to the body. I want something a little more realistic, so I headed to my belt sander ( mounted on it's side in a vise) and set out to increase the angle of the flat spot on the body. Once I got the left side the way I wanted, I knew I would want this angle the same on both sides, so I used my trusty carpenter bevel to check the angle.
I decided, for the scale of this figure, a flat surface about the size of a quarter would be plenty of glue surface to hold the arm in place, with the added assistance of a 1/4 dowel. I will have to be sure not to touch this area on both arms and body while I shape them later.
A small drafting square and some practical shop geometry helps me locate the center of each circle. After the fact, I realize I could layout the circles with a compass and I'd already have my centers, but the coin method was better for me in positioning the arms to the body.
Next I drill holes and cut dowels to length. Doing this at this stage of work allows me to accurately position the arms as I work, checking their appearance and position. When it comes time to glue them, I'll know exactly where they should be. Once the underside is carved to completion, I'll glue the arms of and carve the shoulders and glue line.