Cool shape. Can instantly tell it's a badg3r
For the ears definatily extrude faces and edge loop splits.
When working with extrusions, get the shape right first. Then extrude. This will save you a ton of time, and as with most drawing if the construction is correct, the rest will fall into place with relative ease.
I would first move the vertices into position so that they form the outline of the ear (in the area where the ear connects to the head.) You can add some cuts with split polygon tool which is a good way to get more geometry to work with in the areas where you need it.
When you are happy with the base of the ear. Extrude the faces and model the shape of the ear. Get some edge loop splits in if you need more geo, and push some of the faces in and some of them out :p