This is a simple ornament to produce en masse for classmates or to hang on your Christmas tree. Kids may continue playing with the tiny paper Santa hats long after the lollipops are history.
First, turn your lollipop upside down, then decorate one side of it as Santa's face. Here, we glued on a white paper beard (with a punched hole for Santa's mouth), a red pompon nose and two googly eyes.

To make the hat, cut a red paper semicircle, roll it up, and tape it to form a cone (you may need to experiment to get the right size). Glue cotton ball trim around the hat's bottom.
Tape a loop of thread to the lollipop stick, then pull the thread through the top of the hat so that it sits on Santa's head. Add a bit of cotton for a pompon.