Makes: 212 dozen. Prep: 10 minutes. Bake: at 350° for 11 to 13 minutes.
Heat oven to 350°F. Line 3 cookie sheets with nonstick foil. Knead dough and flour together until smooth.
Roll out dough to scant 1/4-inch thickness. Cut out desired shapes; transfer to foil-lined cookie sheets. Using smaller cutters, cut out centers of cookies. Repeat with remaining dough. Use a straw to make a small hole in the top of each cookie.
Bake at 350°F for 8 to 10 minutes or until cookies are golden and almost cooked through. Remove sheets from oven. Meanwhile, place like-colored candies in plastic bags. Using a small saucepan or hammer, crush candies.
Fill cutouts with candy pieces. Return cookie sheets to oven for 2 to 3 minutes longer or until candies are melted and smooth. Do not overbake or candies will lose their color. Transfer sheets to wire racks. Cool completely. Peel cookies from foil.
Pipe decorative patterns on cookies using different color icing. Let icing dry about 2 hours or until firm.
Tie a ribbon through hole. Hang as an ornament or near a window. Note: For cutters, visit coppergifts.com or downtowndough.com.
Beat together confectioners sugar, powdered egg whites and water for 7 minutes, until fluffy and consistency of sour cream. Divide into thirds. Tint one-third green, one-third red and leave the last plain. Spoon each color icing into a pastry bag fitted with a small, plain tip.