Anyone can get a mug made with a picture on it; why not use photos to make something more unique instead?
For this you will first need a plain white plate with a recessed interior circle. Plastic will be easier to use to make the gift, while ceramic will of course make a nicer looking gift. You will also need a photo large enough to be trimmed into a circle for the center of the plate, photo-safe adhesive, photo-safe glaze (optional but recommended), and a wall hanger for the back of the plate. You should use paper and a pencil to make a pattern for cutting out the picture. You may also wish to purchase paints and brushes to decorate the outer circle of the plate. Acrylics or craft paints will be fine for a plastic plate, but you probably want enamels for a ceramic plate.
Lay the paper across the plate and mark the center circle with your pencil. Cut out this circle and lay it over your photo. You may also tape it to the back of the photo, if you can line the picture up well enough that way. Cut out the picture in a circle. Apply the adhesive according to the package directions and affix the photo carefully to the plate. While the glue dries is a good time to use the paints if you have them. You can paint abstract swirls, small items found in the photo or holiday themed images like trees and bows, depending on your preference. Allow everything to dry completely before applying glaze. Affix the hanger and wrap your gift!
You will need construction paper, clear shelf liner paper (or a laminator), a photo, scissors, glue and an ornament hook. Fold the paper in half a cut out an ornament shape, so you have two identical pieces. Cut a circle in the middle of one piece, large enough to display your photo. Glue your photo to the piece without the hole in it. Dot glue around the edges of the paper. Lay the paper with the hole on top of the photo and press in place. Cover with shelf liner on front and back and trim to fit, leaving a small tab at the top for the hook. Attach the hook and you're done with your gift.
Paper Ornament Frames
You will need an 8x10 sheet of #6 plastic (if using recycled plastic, test a small piece to insure it is heat-shrinking), a photo, fine tipped markers, glue, scissors and an ornament hook. Cut from the plastic two identical rectangles about 3 times as large as you want your frame to be. Draw small images around the outside 1/2 inch edge of one rectangle. Cut a small hole in the top of both rectangles for the hook. You may cut an oval in the one that was not drawn on or leave it solid. Bake the plastic according to package directions or for about 1 minute on 250. Ovens vary, so watch it carefully; once it curls up and lays back flat it is done. Trim your photo so that there is at least a 1/4 inch edge of bare plastic. Attach the photo to the back piece with a dot of glue. Dot glue around the bare plastic edge, then sandwich the photo between the rectangles and attach the hook.
Hangable Photo Collage/Photo Decoupage Box
Gather images with a holiday/Christmas theme. Use the instructions found in the second project here to attach images to either canvas or a cardboard or wooden craft box. Use paint for anywhere you can't fit a photo or to color the negative space if you just don't have enough appropriate photos.