When she started school the teacher was amazed at her hand co-ordination. Here is my suggestions for a simple toddler craft. Let them color popsicle sticks. You can glue them into a square and put a picture in them, cut out of a magazine, or a photograph. Tie a string on two sides to hang it like a picture.
Paper towels have different, fun prints nowadays.
You can even get holiday themes. You probably have a roll on hand. The markers give a soft, watercolor look on the paper towels. Markers color easily, with just a touch for the littlest ones, and the older ones can make designs my marking along the raised texture of the towels. They will get a kick making it look like a quilt.