All entries were judged by a blue-ribbon committee of experts, with "Magic theme," "creativity," and "holiday cheer" each being worth 33% of the total score. First, let's look at the ten runners-up, each of whom won two randomly-chosen Lorwyn theme decks.
Runner-up: Kim Janik (Goblin Snowman)

Kim says: "I have to admit that I had a lot of fun creating this life-size version of the Goblin Snowman. The entire snowman cookie is edible and we donated the finished product to my children's school for the teachers to enjoy on their break."
Runner-up: Angel Ducak

Runner-up: Sara Yarrington
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The judges decided that there was a lot of holiday cheer in getting together with your friends to eat cookies at a Magic shop.
Runner-up: Zane Barker

Zane's description of the cookie says: "A dragon celebrating the holidays and enjoying a treasure chest full of gold. Covered in frosting, sprinkle diamonds in the treasure, and mini-chocolate kisses for back spines."
Runner-up: Sam Condon (Planeswalker Santa)

Sam's version of Santa as a Planeswalker is all about giving gifts:
3RW
Planeswalker--Santa
+1: Each player puts a +1/+1 counter on a creature they don't control.
-3: Each player gives an opponent control of a permanent they own.
-7: Each player wins the game.
Runner-up: Matthew Greenblatt

Sam Condon told a story with his cookes, thus combining two great things: stories and cookies. Oh, and holidays. And Magic. Also probably some butter, eggs, and sugar.
Runner-up: Jesse D. (A Very Treefolk Christmas)

Jesse writes: "My friends and I have been debating whether or not the card Sheltering Ancient is useful...well, I finally found a use for it in my entry! The cookie is entirely gingerbread with sugar glaze; it includes the Treefolk and figures from the card, all dressed up for the holidays, as well as all five Moxes as decorations! "
Runner-up: Timothy Nyberg (I Saw Zombies Kissing Santa Claus)

Timothy gives us another heartwarming -- oh no! Santa! Look out for those zombies! Noooooo! He writes, "I thought it best to preserve the traditional ginger-bread-man form for the zombies, as it seemed the best integration of your requirements that the content be both M:TG and holiday themed."
Runner-up: C. Bedford Crenshaw (Stuffy Doll)

Bedford writes: Attached are my entry for the Cookie Contest. Four STUFFY DOLLs, one of which was GIANT GROWTHed, which was later put on THE RACK. (Couldn't get to my somewhat-blackish Black Vise)." Here's the racked Stuffy Doll:
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Runner-up: Nathan Olund

Not bad! Let's take a closer look at some of those!
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Nathan writes: "Santa and his eight tribal reindeer were trying to spread christmas cheer this holiday season, but alas something was just missing. So Santa found a reindeer giant elf mutant zombie illusion bird .... shapeshifter to lead his crew and light his way. Happy Holidays."
Congratulations to all the runners-up. Let's go to the two second-place winners!
Second Place: Greg Laffrenzen's Nativity

Nicely done! Let's take a closer look at that camel!

Greg wins a set of Lorwyn. Good job, Greg!
Second Place: Robert Owen & Lenny Talbot (Santa Claus Planeswalker)

The complete text of Robert and Lenny's rendition of Santa is:
1WRG
Planeswalker - Santa
+1 Put two 1/1 reindeer tokens with flying and bands with other reindeer into play
-1 Put a coal counter on target player.
-6 If there are 8 or more reindeer in play all players without coal counters search there libraries for a card and may play that card without paying its mana cost.
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Robert and Lenny also win a set of Lorwyn. Nicely done!
Of course, the true spirit of the holiday is declaring a winner. And that winner is...
Champion: Paul Arsenault

Paul was far and away the winner (and takes home a foil set of Lorwyn for his troubles!). He says: "The concept centered around all the MTG creatures putting away their differences during Christmas, enjoying the holiday, and all pitching in to decorate a tree. The goblins, of course, couldn't help starting a snowball fight with the elves and a few beasts gave Rudolph and the gang a day off."
Here's the complete list of cards:
Santa Claus
Santa's Sleigh
Sneaky Homunculus
Fear X 3
Sage Owl X 2
Thorn Elemental
Birds of Paradise
Goblin Snowman
Goblin Charbelcher
Helm of Kaldra
Stuffy Doll
Black Lotus
Spiny Starfish
Cromat
Spikeshot Goblin
Frenetic Raptor
Bog Gnarr
Drekavac
Sheltering Ancient
Venomous Dragonfly X 2
Goblin Turncoat (subtle positioning!)
Goblin Rimerunner
Viridian Zealot
Stonewood Invoker
Spiny Starfish
Cloud Sprite
Spur Grappler
Talon of Pain
Cackling Imp
Foul Imp (imbued with Christmas spirit)
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Thanks to everyone who participated, and congratulations to the winners. Also, congratulations to the people that actually got to eat the cookies, because it turns out that judging dozens of pictures of cookies makes us kind of hungry.