What are you having trouble with specifically? There's two elements that stand out: the cutout pattern and dangly spiderwebby stuff. The dangly stuff could be done with curves in 3d then baked, or painted in 2d, whichever you prefer.
For the pattern, I'd make several alphas to stamp around, or paint each section by hand. I think simulating the "tearing" of the cloth would be easiest with simple strokes to fill in the cloth, following the general flow horizontally and vertically. Then go back and fix up the shapes of the holes as needed.
As for the actual model, that depends on if you want thickness or not and what your final style or intent is. Personally I'd keep the cloth "flat" and just stick with a regular texture with the skin painted in unless I needed a cloth and body mesh for the final.
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For the pattern, I'd make several alphas to stamp around, or paint each section by hand. I think simulating the "tearing" of the cloth would be easiest with simple strokes to fill in the cloth, following the general flow horizontally and vertically. Then go back and fix up the shapes of the holes as needed.
As for the actual model, that depends on if you want thickness or not and what your final style or intent is. Personally I'd keep the cloth "flat" and just stick with a regular texture with the skin painted in unless I needed a cloth and body mesh for the final.