I made a quick tutorial of how I cut custom DIY capes for my minifigs. I've developed a technique that provides a precise cutting and hole punching.
This is a One picture tutorial I've uploaded on Flickr:
LEGO DIY Cloth Cape cutting by Felipe Avelar, no Flickr
And here are higher quality pictures I've uploaded to recently created second account for such purposes: https://flic.kr/s/aHskS9i1xk
I'm a brazilian Afol with a six month toddler at home; can't afford fortunes on beautiful Cape Madness stuff, nor can't afford original capes in bulk either. So I went for the DIY road.
Hope it's useful!
C&C always appreciated.