Help with ideas for a Holiday Festival?

Hello fellow DMs - I run a little casual homebrew game that takes place in the Star Stable Online game. We're well into the second arc of a four arc serious storyline, but as the Winter Village is now available in game this month, I think it's time for another "casual fun" session break.

Last year we hunted down a thieving Yeti in the village, but this time I want something more fun, so I am thinking of a Holiday Festival type event the players could do several interactions at, and then earn a gift under the tree with a magical item that will come in handy during the main storyline.

What are some holiday interactions they could do as a group that would fit well? So far I am considering:

Caroling

Cooking Decorating Contest

Egg Nog Drinking Game

Ice Sliding Contest

That's about as far as I got, as I don't actually celebrate any holidays haha. I thought some of the intelligent minds here might have some ideas of things I could have them do in a Winter Village in a magical world of horse riders. They don't have to be Christmas-themed as the Winter Village is pretty inclusive, and Yule goats are featured prominently.

Really appreciate this sub, it's been a massive help to me running this somewhat silly but oh so enjoyable game for my Star Stable pals.