I had a ball of hand-dyed wool languishing in my stash that turned into this little guy over the course of a few evenings. I couldn't find a pattern that gave a realistic enough result, so I just made it up as I went along, working off of my sketches and some photographs. His eyes are needle-felted, so he's really soft and cuddly. Now, he just needs a name.
Edit: He has a name! Waterbaby (of Craftster.org) hit upon a great one. The octopus shall be known as Jacques!