Two of my favorite frugal (and easy!) holiday recipes:
Make your own vanilla extract: Vanilla extract is expensive! Make your own for way less money and use it for your holiday baking, or give it away as gifts! There is a great DIY vanilla tutorial on JoytheBaker.com.
Easy microwave fudge: I used this recipe after I tried to make fudge the not-easy way that involves candy thermometers and soft balls (?). I ended up with chocolate soup. This recipes from Cooks.com is much, much easier, and IS DELICIOUS.
Image from http://www.sxc.hu/photo/1360809