I spotted the perfect Oscar the grouch color blanket and set about making a costume. The head was made out of duct tape and wire, then I glue gunned the blanket fabric on. The top of Oscar was the remains of the blanket, and the can was two hoops and a silver table cloth that I painted to look more like a can.
It was super comfortable and fun to wear. Note: I fuzzed out the writing on the t-shirt as it was not kid friendly.