Great ideas! We do cookies too and I'm planning on doing those canvases that hopeful shared (I printed the info off last year when she shared it so I would remember this year, lol). I got lucky & found the modge podge at the dollar tree in the school supplies and our AC Moore is an outlet so I got a great deal on the 8x10 & 16x20 canvases.
I did these snowman handprint ornaments with DD & my niece for my mom & sister a few years ago & I'm going to try to do it with my 3-yr old nephew this year:
Little Bit Funky: make these now! handprint snowman ornament. 
They were super cheap and easy & not terribly messy.
ETA - I LOVE the idea of homemade vanilla extract but I realize it may not be the best gift to have sitting around in a home where alcohol is an issue. I think it takes a few months to make though, I checked into doing it a couple of years ago.