CUPCAKE DECORATING is lots of fun for kids to do. Perfect for birthday parties & afternoon teas. Just grab a cheap artists palette from the $2 shop to keep all the bits & pieces together. Other birthday party tips: http://www.under5s.co.nz/shop/Hot+Topics/Activities/Birthday+Parties.html
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We used our 8x8ft tent I have for my craft shows and set it at its lowest height. Covered it with white sheets, added lights, blankets, pillows, balloons and decoration on the inside. It was an instant hit. Our little one played for hours in the 'tent'!