In the past I've recommended The Toymaker's site for beautifully designed paper toys that you can print off and use with your kids.
I got an email notice that there are new fingerpuppets available. They're so cute! The Toymaker suggests making up a story to go along with the puppets, but keep in mind that they can also be used with fingerplays such as you can find in Ring a Ring o'Roses: Finger Plays for Pre-School Children [372.5 RIN] and 1001 Rhymes & Fingerplays: For Working with Young Children [372.87 ONE]. Fingerplays and rhymes are great for reinforcing counting skills, memory skills, and other skills that will later aid in reading. And, of course, they're fun!