I always like pictures that are made out of geometric shapes. I love the simplicity as well as the flexibility, and it's a fun way to talk with young children about different shapes and the way they fit together. This nativity scene was made using five triangles, three circles, two rectangles, one trapezoid, and one oval.
We made this out of felt because I plan to keep the pieces and use them to build different scenes over time, but you could make it out of construction paper and glue it together that way (or glue down felt pieces) just as easily. My two-year-old is barely beginning to understand the Christmas Story, and she likes learning about it in different ways.