Two different colors of yarn
Small ball of cotton
Cut 24 (12-inch) pieces of yarn (yarn color number 1).
Lay the yarn on a flat surface so that it looks like the spokes of a wheel, and so that the yarn intersects with each other in the center of the wheel.
Put a small ball of cotton, a little bigger than the size of a ping-pong ball in the center of the wheel.
Gather up the pieces of yarn around the cotton and tie them with a piece of an other color of yarn (yarn color number 2).
Separate the yarn into groups of three, and braid them. Tie each braid at the end with a piece of yarn color number 2. You should then end up with 8 braids.
Glue two googly eyes onto the yarn surrounding the ball of cotton.
Use either yarn or felt to make a mouth for your octopus and glue it on.