1. A digital image processing method comprising the acts of: a) calculating directional color correlation signals, global gains, and orientations of edges in a color filter array (CFA) input image; b) demosaicking missing luminance components in CFA chrominance locations along edges in the input image using CFA chrominance components and the directional color correlation signals; c) white balancing the CFA chrominance components using the demosaicked luminance components, the CFA chrominance components, and white-balancing gains expressed as a function of the global gains and local gains calculated directly from a pixel under consideration; d) demosaicking missing chrominance components in CFA chrominance locations in the input image; and e) demosaicking missing chrominance components in CFA luminance locations in the input image, wherein performance of the acts a), b), c), d), and e) results in the transformation of the CFA input image into a full-color white-balanced output image.