Photoshop 'Cutout' effect

[mega]

Does anyone know the algorithm of this effect ? I need to recreate it and want to get some clues on where to start.

[Nici]

I've the same problem. I need to recreate this effect for a part of my diploma thesis.

I started with reducing the colors in the images by clustering ... (i assume this is the "number of levels")
but if you have look at the paramter in the filter this should not be it. there is a "edge simplicity" and "edge fidelity" etc.

please let me now (e-mail - profile) if you find out more!