Step 1: Decorative shipping stuffing
You can also use this as decorative stuffing for gift baskets or other gifts like the scented bath salts I made for all my friends and relatives a couple years ago.
Step 2: Paper bow
Update: I just had to include this because is is so pretty and simple: Kelp_horse made a really nice Collage Paper Bow which is definitely worth a click.
Step 3: Cards
Step 4: Paper dolls
Buying ready-made paper dolls just sucks out all the fun, creativity and the pride out of making your own free toy -- so if you want to make your own and don't quite know where to begin, check out my paper doll instructable.
Step 5: Christmas tree ornaments
There are other excellent instructables by talented members of the community, including this one, by makedo-able, or this 3D star called a Fröbelstern by all_thumbs
Step 6: Make useless but beautiful things
Step 7: Paper beads
Step 8: Origami
Square origami gift box by sherrycayheyhey or her triangle box
Of course, there's the basic crane which d.i.y master illustrated with pictures (which I prefer to a video), or the Chinese vase by origamic12. These are just a few of the many origami projects here.
Step 9: Book binding
Thanks to susanrm for this idea posted in the comments!