Mix together all ingredients in a large bowl until dough is formed. Remove from bowl and place on a lightly floured surface. Knead until dough is smooth. Lightly dust with flour if dough is sticky. Take care not to over flour as it will cause the ornament to be over dry.
Roll dough to 1/4" thick with a rolling pin. Use favorite cookie cutters to cut out shapes for ornaments. Punch a hole in the cutout with a plastic straw for inserting a ribbon when finished.
Place cutouts onto parchment lined cookie sheets. Bake for 2 hours. Remove from oven and cool completely before decorating.
Paint your ornaments in your favorite colors, patterns, etc. Allow to air dry and then apply a thin coat of sealer such as varnish, shellac or epoxy.
Allow to dry overnight and then insert ribbon or string into pre-punched hole for hanging.
Additional options: rather than punching a hole and hanging your creations as ornaments, you can glue pin backs onto the back of your ornaments for festive holiday pins to wear and give as great gifts.