Perhaps you could get expanded beads at you local DIY store. I think they may be used for decorative purposes (I'm not sure about this, but Xmas time is over, so this might be the right time to check).
Then you could perhaps try to glue them together using a suitable solvent. The solvent will plasticise the EPS and make the beads sticky, you can then "hand-mould" the beads into the desired form. After evaporation of the solvent the beads are glued together.
Acetone is a good solvent, so perhaps acetone/water mixtures will do.
Oliver
PS: When working with organic solvents the usual precautions apply: good ventilation, no open fire, you should be wearing protective gloves and goggles.