I used this tutorial to make these heart decorations:
I'd already made a tiny string of them in pink just because, but using this chunky wool and a size 8 hook makes really cute big hearts. I think I'll make a lot of them and string them by the window.
I used red and white felt and a checked ribbon I found in my stash. I think it's quite cute, I'm going to put it underneath my wreath (when I finally manage to make one - I may just cave and buy this one from Paperchase). I haven't decided what to put on the blank pieces yet - thinking snowflakes on the red, but what on the white? A stocking? I think it should stick to the red and white colour scheme. What do you think?