I just came across a blog that I think will come in very handy being a nanny for a very crafty little girl... Craft Projects has tons of neat ideas for crafting with kids that are not junky and ugly but very creative and beautiful, indeed! You can check it out by clicking here.
Here are some of the crafty kid projects like a sticker canvas drawing, fabric collage, or monoprint painting:
These last two are more so fun adult crafts- an embroidered applique toddler shirt, or a wood veneer piece of art!