One of our favorite activities for any holiday is to make play dough in the appropriate holiday colors and get out the cookie cutters! For these Christmas ornaments, I made red and green play dough, and I mixed in gold and silver glitter that I'd been wanting to use up. We made the shapes with Christmas cookie cutters, decorated them if we wished, and punched a hole in the top of each with the end of a drinking straw. Some recipes call for baking the ornaments on low heat, but while the no-cook-play dough recipe I used here is my favorite one for consistency, I have found that it does not bake well. I just left these sitting on waxed paper for 24-48 hours until they dried well, then we hung them on the tree.
I cannot find the exact recipe I used, but the one at The Imagination Tree is very similar.
Merry Christmas! :-)