This is the recipe I use. However, there are many others. I put a link on the bottom for other variations
Mix together 2 cups of cinnamon, 4 t of ground cloves or all-spice, 1-1/2 cups of applesauce, and 4 tablespoons of white glue. Knead the mixture for about 10 minutes. If the mixture is a bit too wet, add more cinnamon; if it is too dry, add more applesauce. The mixture should form enough dough to create an ornament for all students in a class of 25 students.
Note: If you prefer to have small groups of students working on this project, arrange students into groups of six. Have each group mix ˝-cup of cinnamon, 1/3-cup of applesauce, and 1 tablespoon of glue.
Students take turns using a rolling pin to roll out the mixture on a board dusted with cinnamon. Then provide a cookie cutter (if all students will create the same ornament) or a collection of holiday cookie cutters. When the dough is rolled out, students press the cookie cutter(s) into the dough to form their ornaments.
Variations: You might provide non-holiday cookie cutters -- such as animals or a schoolhouse -- that would also be appropriate. Also, students can use the tip of a pencil or an unraveled paper clip to scratch a message into one side of the ornament. That message could be as simple as the student’s name and the year, so the ornament will serve as a memento of this holiday season. If the ornament will be given as a special gift, students might scratch a message of love for the planned recipient.
Use a spatula to lift the ornaments onto a sheet of wire screening (or a cooling rack used in baking). Use the tip of a pencil to gently poke a hole at the top of the ornament. Over the next two days, turn the ornaments a few times, so they will dry thoroughly. If necessary, ornaments can be baked in a very low oven.
When the ornament is dry, string ribbon through the hole, so it can be hung from a tree or window.