Saw this in the castle layout next to a little black hut at NWBrickCon, but my battery was dead and I couldn't take a picture of the MOC card. Speak up if this was your design/idea.
1. Take the head off an old BASIC "finger puppet."
2. Insert a Technic axle pin into an axle joiner.
3. Put the axle pin and joiner inside the old fig's body and thread the pin through the head-hole.
4. Insert the Technic pin into the minifig torso.
Note: The Technic pin will only fit into an old-style minifig torso. The new-style torsos have flanges (or something) that prevent it from fitting.