Make Patchwork applique shapes using 2.5" squares
You can sew the squares together in rows. First you decide on a shape that you will be placing over the pieced squares, so you will know what length and width to make your pieced squares.
See the sewing machine in the wall hanging photo that I made using this method. I traced the sewing machine shape onto wonder under and ironed it to the back of the pieced squares. Next I cut out the shape and fused it to the background fabric.
I have seen a Patchwork Rabbit done this way and fused to a canvas bag. There are lots of shapes to think about for your Christmas theme squares and many ideas of what to fuse the patchwork shapes onto such as mug rugs, potholders, bags, etc. Have fun!