At least 4 hours before using:
Cover a working surface near the stove with newspaper to catch any wax drips. Place a sheet of waxed paper on a baking sheet. Using a small skewer, carefully pierce each peanut shell just below center indentation for arm holes and at one end for leg holes.
Place paraffin and crayon or candle in a clean, dry tuna can. Place can in a 1-quart saucepan containing 1/2 inch of hot water. Place saucepan over low heat and stir paraffin occasionally with a wooden pick until wax and crayon or candle have melted. If using candles, remove and discard wicks. Transfer can to newspaper and let stand for 2 to 3 minutes or just until wax begins to set. Immediately dip head tip of peanut into paraffin mixture to form a hat. (You may need to dip several times.) If desired, insert a bent pipe cleaner for pompon at tip of hat. Place peanut on waxed paper and allow hat to set. Repeat with remaining peanuts.
When hat has set, draw on facial features using black for eyes and nose and red for mouth. Insert pipe cleaner pieces into the arm and leg openings bend ends to form hands and feet. If arms and legs are loose, remove from peanut, dip ends into glue and then insert into peanut. Tie ribbon or yarn for a scarf around the indentation below the face. Use as ornaments, for favors or as package decorations. Elves will last indefinitely.
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