For the dough, mix 1/2 cup salt and 3/4 cup warm water in a bowl. Let stand five minutes. Then add 2 cups all purpose flour and stir until the mixture is thoroughly combined.
Turn the dough onto a floured work surface and knead for 7 to 10 minutes, until the dough is smooth and pliable. If colored dough is desired, divide the dough into as many portions as needed and knead a few drops of food coloring into each portion.
To shape, roll the dough out 1/4" to 1/2" thick, then cut with cookie cutters or by tracing around paper patterns with a knife. You may also mold the dough by hand into shapes. Bake the finished ornaments on a foil covered baking sheet at 350 degrees for 1/2 hour, or until the dough is very dry, firm and lightly browned. Thin pieces may take slightly less time, while thick shapes will require a bit more.
When pieces have baked and cooled completely, they may be painted with watercolors or acrylic paints. Bits of ribbon, beads or sequins may be glued on with white glue. For a shiny finish and to preserve the dough ornaments for many years, apply a thin coat of varnish, shellac or clear acrylic coating.