Step 1: Preheat oven to 200 degrees.
Step 2: In large bowl, combine all ingredients. If too dry, add more applesauce, and if it is too wet, add more cinnamon.
Step 3: Knead dough 3 minutes to form a ball. Between two sheets of wax paper, roll dough out to 1/4 inch thickness, do not roll too thin.
Step 4: Make a hole using a toothpick, at the top of the cookie, so you can hang the ornament. Using cookie cutters, cut dough into shapes, and place on baking sheet.
Step 5: Bake 2 hours, turning every 30 minutes. If you don't want to bake the ornaments you can let them air dry for a couple of days.
Step 6: Decorate with craft puff paint, or other craft items.