Combine the salt and flour, then add the water until the dough becomes elastic. Add the oil at this time and knead the dough (if it's too sticky, add more flour). Once it's a good consistency, make your decorations with cookie cutters. Bake ornaments at 200* until hard (about 20 - 30 minutes). Once they've cooled, paint them with designs and symbols, and seal with clear varnish.

If you're planning to hang them, poke a hole through the ornament BEFORE baking them. Then after you've varnished them, run a ribbon or thread through the hole.