Thanks for the kind words. To make the dough, just mix equal parts of applesauce and cinnamon. I gave each child a 4 oz tub of applesauce and a heaping 1/2 cup of cinnamon. Just mix well. If dough is too moist add a little cinnamon and if too dry add a little more applesauce. Start mixing w/a spoon then use your hands. Roll 1/4" thick and cut w/cookie cutter. Use a straw to make the hole for hanging. Let dry for 3-4 days or you can dry in oven at low temp.
For the bag, I cut the towel in half and did a roll hem at the top edge. Then I sewed the 2 long sides together with a french seam and sewed in the white ribbon that the bag is tied with in the seam. Then I hand sewed (because of the pom-pom's) the bottom straight across. It took me longer to figure out how I wanted to do it than anything!