Preheat oven to 200 degrees. Line a baking sheet with parchment paper. In a bowl, mix together applesauce and cinnamon to form a clay-like dough.

Roll out dough between sheets of waxed paper to about ½ inch thick. Cut using cookie cutters. Using a straw or bamboo skewer, create a hole for hanging the ornament. Transfer ornaments to a baking sheet. Bake for 2 ½ hours. Remove from oven and place ornaments in a cooling rack.

Allow ornaments to dry on the cooling rack for 24 to 48 hours, turning occasionally. Add a ribbon to ornaments for hanging or to attach to packages.