Combine all ingredients in a large bowl. Use a mixer or spatula. Make sure all the cinnamon is absorbed into the applesauce.
Once dough is well combined, knead it several times, pressing the dough firmly into a ball.
Sprinkle some cinnamon on a smooth surface. Using a rolling pin, begin to roll out the dough. Turn the dough a few times while rolling, adding more cinnamon to prevent sticking.
Roll to about 1/4 inch thick and using cookie cutters cut out the desired shapes.L Remember to add a hole for hanging.
Lay the ornaments on a cookie sheet covered with wax or parchment paper. Using a skewer or small straw, make a hole in the top of each ornament.
Ornaments should dry in 24 to 48 hours. It helps to turn them occasionally so they dry evenly.