(Spokane WA USA)
We celebrate Christmas with a birthday party for Jesus - birthday cake and all!
We have the hats and party supplies (plates, napkins, etc).
When we do our presents we each get three gifts and read a story book about Christ's birth and open one gift after we read a section about when each of the wise men presented their gift.
We will play party games too - pin the tail on the donkey is our favorite!
When we do the birthday cake after dinner we sing "Happy Birthday" to Jesus and we all blow out the candle.
Not only is this great fun, but it builds tradition in our family and keeps the focus on why we celebrate Christmas.