"My Bag that I got has Candy Canes, Stockings -red/white ones, Goldish/Tanish Hearts and Stars, Christmas Trees - Green/Red ones. "
Let's see:
Candy Canes - You can cut red/white striped fabric on the bias for the binding, or applique
Stockings - Applique would make these stand out, maybe even some fluffy white minky for the top
Hearts and Stars - try quilters cache for block patterns for different hearts and star blocks
Christmas Trees - Oh, these can be fun! Look for free patterns for the trees. You can embellish with sequins for the ornaments or try 'couching' some funky yarn for the garland.
Just some ideas..... I'm sure other people will soon chime in here and help ya out!