This was a lot of fun and one of our new family traditions! The kids had a blast, and so did my husband and I! We made 2 so we could take one to our neighbor who had just moved a few days before.
We used black licorice for the face and legs of the marshmallow sheet, gumdrops for the shepherds and wise men, and my husband even got creative and made some animals with toothpicks and gumdrops! The hay is coconut with yellow food coloring.
Next year I'll buy the bigger gum drops because they were really tiny compared to the rest of the display. And figuring out how to do an angel would be cool too. We used fruit roll ups for the head pieces. Something else may work better, but the kids thought it was great! Really you can't go wrong, just buy some candy and get creative!