C.C.
I would go ahead with the snowman and/or candy cane themes! It never snows here, but kids still love the idea of snowmen, snowflakes, sledding, etc, and ALL kids like candy! Last year my daughter's teacher gave each child a book about what snowmen do at night. My daughter has never made a snowman in her life, but she has read that book about once a week since she got it. LOL
When I was a room mom, we did cookie decorating at the class party before Christmas. It was a big hit. It will keep them busy for a while, serves as both the party craft and the party food, and dodges the whole religion question. ;)