I am going to have my watchman turning from side to side from the waist up. So my frame work is very similar to Krusty's at least from about the waist up. But I could probably do a T fitting right under the X fitting where the shoulders and neck connect only I could just use a second T fitting instead of the X fitting. Thanks for the idea on how to keep the head up while still doing hunched shoulders. I will play around with some different fittings tomorrow and see what configuration will work.Take a look at cauldron creeps. The Scooby-Do character you posed is even called The Creeper, so maybe it's an homage to the cauldron creep's look.
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Many cauldron creeps have a hunchback sort of look just because of the way they're made.
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Their heads are actually set below their shoulders. Which means if you made your watchman to the same specs (just with wider and bulkier shoulders) you could have his head bobbing up and down with very little effort.
And if you make your own hands, you can have him holding onto a lantern without it looking weird that his fingers aren't bent.