This book lends itself well to crafts of various types. The obvious one would be to make gingerbread men, whether they be the actual decorated cookies, or paper ones that are decorated.
One I am going to try with my kids is making pretend lollipops. The easiest way to do so would be to get a paper circle, have your child decorate it, and glue it onto a straw. I am going to try to decorate coffee filters with markers, and then fold it up very small. Finally, dip the corner in water and turn it upside down. Let the colors run together, and open to dry. Finally, glue it onto the straw. I'll let you know how it works out.
Please post your craft ideas too!