So I want to use the extra settings for the musgrave setting (where you can pick blender original or voronoi f2 etc.) in a material but it seems you can only use it in the texture panel. Is there any way of using these textures in materials?
Cycles is a completely different rendering engine, with its own system, separate settings, materials and different workflow. Blender internal materials and textures are not available under Cycles and the opposite is also true.
Cycles has it's own musgrave texture accessible through the node editor Add Menu > Textures > Musgrave. It has it's own set of settings and can be tweaked as just like Blender Internal. You can even use other textures com combine, mix or deform the current one.