Make a house out of candy. There are several options for this. You can make a 3D house, as is sometimes seen at Christmas, and decorate it with candy. You can make a flat house out of graham crackers sugar cookies and have the children decorate that, or you could even have the children glue the candy to a paper house.
Have the children make construction paper drawings of Hansel and Gretel and the witch. Cut them out and attach them to craft sticks. The children can use the puppets to re-enact the story.
Have the children make a map on construction paper, showing Hansel and Gretel's path from their father's home to the witch's home. Have them document various events that occurred along the way and add detail and a key to the map.
One of the major lessons of the Hansel and Gretel story is bravery in the face of danger. Gretel was brave when she saved herself and her brother from the witch. Discuss bravery with the children and have them think of ways they have been brave in the past. Have them draw a picture of themselves being brave as a badge of their courage.