Some of my favorite Christmas ornaments are those I've made myself or ornaments which hold some nostalgia, such as the Made in Japan Santa above. My first year out on my own after college, I had no money to buy ornaments so I made ornaments out of cornstarch dough and cinnamon dough. I cut the dough into shapes using cookie cutters and painted all the ornaments red or white. It was a very simple tree, but one of my favorite trees. And the beauty of making cornstarch or cinnamon dough is that it's a great project to do with kids of all ages.
An artsy group I'm in recently had a discussion about making Spun Cotton Ornaments. I've never made one, but they are adorable and oh-so-vintage looking. Old ones are highly collectible. I've never made one, but the supplies at this shop make it look very fun. Sarah Neuberger has a fun Snowman Sled tutorial here that is a spin-off (yuck-yuck) of making spun cotton ornaments. Visit Sarah's blog - she has many tutorials listed there.
The group also discussed making Batting Ornaments. If you're interested in trying it there's a tutorial by Lucy Webber in this video on Youtube. Lucy also sells batting ornaments she makes at her site.
What are your favorite ornaments to make?