I have no experience working with pep and foam, but I do have experience working with epoxy putty, and it seems like it would be hard to mold it to paper or foam without crushing it. It's also really expensive. I used $5 worth of putty to make one small disc around 2" in diameter and 1/4" thick. Unless you can get a discount on large quantities of the stuff, you'd spend a fortune to make something like a helmet out of it.
That said, there is this other kind of putty people use to make props which is basically the same thing as epoxy putty, and it's cheaper. I can't remember the name of it though. Still have the same issue of crushing the foam or paper when you try to apply it though.