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My socktopus only has 4 tentacles, but maybe ye who are craftier than me can figure out a way to get 8.

1) Take a sock (preferably a crew sock?) that you don't want and cut 3 equidistant lines up to the heel of the sock. This should form 4 tentacles attached to the main body.
2) Stuff the sock with fiberfill or whatever you have to stuff stuffed animals with. (Bostonians: Winmil Fabrics in Downtown Crossing sells 2lb bags for $5--w00t.
3) Sew up the two sides of each tentacle (only one side for the outside tentacles) and, before closing, stuff them using a stick.
4) Close all the tentacles. I did this by tying the ends off but you can also sew them shut. Up to you!
5) Glue some googly eyes with fabric glue onto the body and do whatever other decorations you deem necessary.
6) Take over the world with your socktopus partner.