This cloak comes in 6 different types. Each are made in the same way, apart from the Soul that determines the type of cloak you wish to make.
First of all, you will need a Reanimator's Cloak. This is built from items found in the Crypt of Home. As well as the Reanimator's Cloak, you will need to collect items that drop from the Escaped Prisoners. In addition to the base items required, you will need to collect 4 lots of each different Soul that drops from the Prisoners. There are 6 different Souls needed to make each Awakened Soul Crystal. In addition to this, you will need an additional 1 Soul to determine the type of cloak you wish to build
You don't need all the items before you can start building and reap the benefits of this cloak. But set of 6 different Souls you combine to make an awakened soul crystal can be used to upgrade the cloak once. With each upgrade, the cloak modifiers become higher. Please note that each upgrade also requires higher skills to equip the cloak.
A final note if you forget which upgrade you're currently own, just check description of the Cloak. The number of lit lights can tell you that. And when the Cloak is fully upgraded, it gets a special buff, which you can use every 10 minutes. Be careful when upgrading your cloak to 5/5, because the final cloak has an additional requirement that you are title level 6 to wear it.
Here is the list of all six fully upgraded cloaks for your convenience: