Preheat your oven to 350°F (175°C) and line a large baking sheet with parchment paper to prevent sticking.

In a large mixing bowl, combine ¾ cup unsweetened applesauce, ½ cup creamy peanut butter, and 1 large egg until well mixed. Ensure there are no clumps of peanut butter remaining for a smooth dough.

Optional: If you’d like to add color, divide the mixture into three separate bowls. Add red and green all-natural food coloring to two of the bowls to create festive colors. Be sure to mix well for even coloring.

In another large bowl, mix together 2¾ cups all-purpose flour and ⅔ cup rolled oats until evenly combined. Gradually add this dry mixture to the wet ingredients, stirring continuously until a dough forms.

Next, roll out the dough on a floured surface to about ¼ inch thick. Use Christmas-themed cookie cutters to cut out festive shapes.

Place the cutouts on the prepared baking sheet, spacing them about an inch apart. Bake in the preheated oven for 13 to 18 minutes, or until the edges are golden brown.

Once baked, remove the treats from the oven and allow them to cool completely on a wire rack before serving.