I first saw the ZipTy peg extenders at the Touratech Rally this summer and thought - "that's brilliant". Some have described these as standing on ping-pong paddles, but I will say they offer a great platform with excellent grip. By getting further outbound you can really get a "power steering" effect by weighting the inside when turning and using the throttle to swing the back around.
Priced at ~$86, this option was also the cheapest of all except for true weld-on DIY.
Installation: These are attached to your stock pegs with stainless nylocks and bolts. You align the extensions and mark the holes to be drilled out. Drill out the holes with a supplied drill bit and use the screws to fix the extension to your peg. I have a drill press so that made the drilling MUCH easier.
http://www.ziptyracing.com/ktm-foot-peg-extensions/