Use a glass building block to make a decoration, by drilling a hole and inserting Christmas lights, then add some decorations on the outside of the block.
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Signing UpStep 1Prepare to drill the glass block.
8 in X 8 in X 3 in glass block (Home Depot)
glass and tile drill bit 1/2 inch
Drill press preferably
Water
Gloves
and Eye protection
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On the coolant, kerosene is the lubricant that the old timers used when cutting glass. Never tried it with a drill.
As for etching, I've seen people use stencils and a sand blaster to etch glass with very good results.
Stained Glass Instructible