A friend of mine asked me to make Oswald. I couldn't find a tutorial anywhere so did my own calculation and created one.
It's pretty simple. Fold around 200 blue paper pieces.
For making paper triangles refer my post here - Angry bird tutorial
Start with a base of 16.
Add pieces upto 8-9 level, till the top is covered.
After that we need to create 8 tentacles.
I used around 6-7 pieces inserted in the below fashion for each tentacle.
If you want you can add more pieces to make it longer.
Draw eyes and lips and stick with glue.
Attach the 8 tentacles at equally spaced distance. Use glue if they are coming out.
I hope this was helpful :)
My Facebook page - The art of folding a Paper