Using the pencil, sketch out your designs on the peg dolls. You can add the shape of the hands, clothing, hair, and more (you're going to paint over these lines).
Sand the wood balls so that they sit flat, since they are going to be individual animals.
Begin painting. The key is to paint individual layers. Paint one layer, let dry, and then come back and paint another layer. When it comes to doing the hands, hair, and faces, use detail brushes to paint.
To make the manger, cut the tips off of two pairs of chopsticks. Hot glue these pieces to the bottom part of the bowl. Paint with white acrylic paint and let dry.
Construct a barn from cardboard, using the scissors and a hot glue gun.
After hot gluing the barn together, use a craft knife to cut out a window.
Cut a few toothpicks down to size with scissors. Hot glue them together to form a star pattern. Then hot glue the star to the top of the barn, on the cardboard.
For the angel wings, cut a pair loosely out of white felt. Hot glue them to the back of the angel peg doll.
Cut pieces of brown paper bag to create the "hay" in the manger. Style the wooden dolls with the cardboard barn.