From: victoria gilmore (vwbug1)

Take some applesauce (a can of the cheapest you can find) and a large jar
(and I do mean large) of ground cinnamon. (I get mine at the dollar store).
Pour the apple sauce into a larger bowl and start stirring in the cinnamon
until you get a stiff dough.  At this point you can roll it out and use
cookie cutters to cut out shapes, or as I do, smush some of the dough into
the cutter on wax paper and then lift the cutter off.  Make the "cookies"
about 1/4" thick. With a toothpick (or something else small, make a hole at
the top.  Let dry.  (this will take a while, or put them in a warm oven for
a while.  I made mine on cookie sheets and put them in the oven after I had
finished cooking until they were dry.)   They will dry a dark brown.
Decorate with that paint you use on T-shirts and hang on the tree with a
ribbon.  They smell wonderful.  After Christmas, I put mine into zip-closing
baggies and saved them for the next year.  They smell forever and in the
bags, bugs are discouraged.

Vicky