Dr. Shrunk
From Wild World Wiki
Dr. Shrunk is pink salamander, and a special visitor who occasionally comes to your town. He is a psychiatrist (and part-time comedian) who can teach you how to 'emote'. This basically means, showing your feelings. The first time you meet him, he will teach you how to blush, showing Shyness. After this, he can teach you a variety of emotions. His sessions are long and can drag on, but they can create a lot of fun.
When Booker tells you that he's in town, he's never in a fixed place. You simply have to find him. He's wandering around somewhere.
He wears yellow on the outside because it's "how he feels on the inside".