OK the key to Zurg is his hat and cape.

Zurg's Hat, Cape, Accesories.

The cape isn't too hard. Black and red fabric cut to shape and sew together. You need to consider choking risk if a kid is going to wear it. Mine was a real risk and was so heavy it kept slipping back 'till I held it with a pair of suspenders.  

For a kid I would defiantly put it on Velcro, use light fabric and mount it to a shirt. The pointy collar is stuffed with cardboard. I used scrap from the cape to make them and sewed them to the cape.

Here is the cape. First the prototype from the Zurg Toy.

The cape from our Zurg room guard.

Zurg.

My cape. Much like the little one. There is a choking risk so if you make one for a kid I recommend you do not loop it around the neck. I would Velcro it to a shirt at the shoulder.  

The point collar things are scrap from the cape that I put long triangles of card board into. The round thing is a windows 95 CD covered in fabric. (Got some use out of it.)