Ok, I followed your guide Omnipotentspoon. I switched all the Color Hex Values to '000000' I eventually figured out that you needed to stick 'ff' on the end of each hex value for some reason. So '000000ff' I replaced all of the 3rd Column over, 4th Row down in each 'Material Color Node'
It made the yarn Yoshi look allot better actually, :D because yarn is not reflective surface in real life. lol It fixed some blue reflections but it didn't fix the main problem. :/
This Texture I believe is the problem,
But when I Replace it, Its not changing anything.
Here is what I would like to replace it with. I think this texture also controls his white chest and cheeks.
OmnipotentSpoon what are your thoughts on this problem? Im stumped at the moment. :\