Life-sized paper doll
My little girl suggested this one. We traced her body on a very large piece of paper (she was dressed only in undies so that her clothes would not distort the body shape.) Then I cut out a "skirt" and "T-shirt" from old fabrics we had around the house and glued them on. She painted "stockings" on her legs and "skin" on the face and hands and I gave her blue button eyes and painted a little smile and some hair. When I wasn't looking, Amadea decorated the paper doll's hair with lots of buttons, which actually looks very fetching. We still need to do some shoes and I haven't decided yet whether to recycle an old piece of leather or use cardboard instead. My son, unfortunately, was not interested in doing this project, even when I offered that he could be "dressed up" in a costume.
The way we did it, this wasn't an obvious "holiday" project, but others could contrive a "Santa," "elf," or "angel" costume for their children's dolls. (Heck, you could do a whole nativity set this way!) It's also not a tree-sized ornament, but it could certainly be placed near the tree. So I hope y'all don't mind that I included it here.
We are going to send the life-sized doll to her grandparents in NY, which I think will be a very pleasant holiday surprise, since we won't see them this year.