How Do I Wrap a character in a blanket?

I’m trying to make a scene where a character is wrapped in a blanket sitting next to a fire. I’ve been experimenting for the past month without success. Any recommendations on how to do it. I’ve figured out how to drape cloth, but not wrap it around anything.

Over the past month I’ve been working on this I’ve made a crude method of achieving this, but the result is pretty bad, not to mention complicated.

Note: I’m using Blender Render, I have not worked with BGE or Cycles yet if that changes anything.

Also If I may ask another question, what would make a decent fleece cloth (since that is the type of blanket I want to use)