Spread glue over 1 sheet of the felt. Arrange the pipe cleaners crosswise, equally spaced, on the felt with 1 end of the pipe cleaners touching 1 long side of the felt (the pipe cleaners should hang over the other long side by about 1 inch). Spread a line of glue over each pipe cleaner. Place a sheet of felt over the first sheet, pressing down and sandwiching the pipe cleaners between the felt. Let stand until dry.
Cut the felt evenly between the pipe cleaners into strips. Round felt end of each strip. Glue 2 lines of the cereal onto each tentacle. Let stand until dry.
Bend the exposed pipe cleaner-end of each of the tentacles at a 90° angle. Tape each pipe cleaner to the sides of the can, at the bottom, making sure the tentacles are cereal-side down.
Glue a rectangle of felt around the can,* covering the pipe cleaner ends. Cut a 5x3-inch rectangle of felt to make the head. Round one end of the rectangle and glue it, rounded end up, to the can. Glue on the googly eyes. Carefully curl the tentacles.