After making our Autumn and Thanksgiving Decoration, we used the same Baker's Clay recipe (below) to make Christmas ornaments. The clay is super simple to make (we only made a quarter of the amount in the recipe). After mixing our dough, we used a cookie cutter to cut it, and we used a toothpick to make the hole through which we later strung some hemp cord, but ribbon would be pretty, too.
Baker's Clay Recipe
(Adjust ingredient amounts if you want to make less dough.)
4 cups All-purpose Flour
1 cup Salt
1 1/2 cups Water
Knead ingredients together.
Shape clay with hands or cookie cutters. Use flour on surface of counter to help keep dough from sticking.
Use a toothpick to create a hole (if you plan to hang it).
Add sugar sprinkles on top, if desired.
Place on a cookie sheet and bake in oven at 350 degrees for 30 minutes. (Keep an eye on the time, because depending on the size of your "cookies" the time may need to increase or decrease. They will begin to brown like a cookie.)