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An apron (Hobby Lobby, $2.99), a cookie cutter (Hobby Lobby, $.99), cookie mix (Target, $1.50, I think), a tub of frosting with sprinkles (Target, dunno the cost). This gift is for a set of twins, so I got two different types of cookie mix: Sugar and Peanut Butter (with Hershey Kisses instead of frosting).
I appliqued initials on these aprons, but I've also used paint markers to write names and draw pictures.
To package, I used a 2/$1 paper bag from Hobby Lobby and paint markers to decorate (eliminating the need for a card):