My niece and I had some quality crafting time over Thanksgiving. What we did:

1. pipe cleaner candy cane
2. ornaments made from drawings. She drew a picture on fabric with some markers, which I sewed to a backing. Turn inside out, stuff, then sew the hole and add a hanger. My mom still has a couple like this that I made when I was little.
3. embroidery. She drew a picture on fabric with water-cleanup markers, then outlined it with a running stitch. The star is her first one! The dog’s still in progress. Once it’s done, you can rinse out the marker so just the embroidery remains.