|Photo from Diamonds for Dessert|
You can find the recipe and tutorial for decorating here: red velvet shortbread cookies. The "fireplace mantel" is white chocolate; the flames and garland are royal icing. And those lights? They are the hands and feet of gummy bears, snipped off. I am just not sure I could bring myself to do that, but I must say they are the perfect medium to produce real-looking Christmas lights. I think small candies, like M&M baking bits, might also work, but would not look as real.
I can't see myself making dozens of these, but a batch or two, in the company of creative grandchildren, sounds like fun! The shortbread sounds delicious, too.