You could do a simple fussy cut Santa head etc. from a fabric, sew around the edge with it right side together with batt and back and turn right side out through a small unsewn seam spot.
I really like the look of tiny Christmas stockings on a tree as ornaments. You just follow a big pattern only make it 3- 4 inches instead. I like to do them the size for folded money to go in or a gift card.