My family has a tradition of each person making something for everyone else. Only after we make at least one handmade gift can we start shopping. :)
I'm making mug rugs and giving matching cups. I actually bought the mugs to go on the mug rugs first because when I saw some of them I just KNEW who they had to go to.
DD's birthday is the 15th of December, and we do the same tradition too - so she'll be getting a Thomas the Tank Engine quilt (she picked the fabric out) for her birthday, unless I can't wait and give it to her early. Then she'll get the Disney princess one for the Birthday. One will be her Christmas gift, and the other birthday.
Some ideas I've done in the past:
pillowcases
PJ pants and a matching (purchased) shirt that I embellish
hot pads
table runners
placemats
wall hangings
quilts
Ornaments - use small paper pieced free patterns. They quilt up so NICE!
Scrap-books. I do digital scrapbooking, and I'll scrap pictures from the previous year and burn them all onto a CD so the family can take them wherever and print them. I do mine in 8x10 size so the pages can be put into page protectors and in binders.