Mix together the applesauce and ground cinnamon in a bowl. (You can also add some ground cloves to darken the color and add more scent.)
Check the consistency of the mixture. We're aiming for a damp dough that holds its shape when you squeeze it. If you find that the mixture is too wet, add some more cinnamon (adding about 1/2 tsp at a time). If the mixture is too dry and crumbly, add more applesauce or white glue (a half teaspoon at a time) until the mixture becomes more firm.
Sprinkle a flat work surface with some cinnamon to prevent sticking or cover the surface with parchment paper. Pour the spiced applesauce mixture onto it.
Roll the dough out so it is about 1/4 inch thick. Use cookie cutters to cut out your desired shapes.
Use a spatula to carefully move the cutouts onto a cookie sheet lined with parchment paper.
Poke a hole in the top of each ornament to create a hole for hanging. A straw effortlessly removes the hole cleanly, but it can also be done with a bamboo skewer or a pencil.
Bake at 200ºF/90ºC for 2 hours or until completely dry. The ornaments should be firm when done, but not crispy as this may cause breakage.
Allow the ornaments to cool. Then, carefully remove them with a spatula.
You can leave the cinnamon ornaments natural or paint them. Dimensional paints work wonderfully for decorating these ornaments. Rough edges can be sanded or scraped off with the edge of a knife or scissors
Thread some twine or ribbon through hole to hang your ornaments.
Video
Notes
You can omit the applesauce and make cinnamon ornaments with only cinnamon and glue. The white glue adds flexibility to the ornaments that helps strengthen them and make them less prone to breakage. These can also be dried in a dehydrator instead of the oven. Ornaments made with glue can be air-dried. Store the ornaments in a cool, dry place. It's best to seal them in some sort of air-tight container to keep moisture out.