I read somewhere, I beleive it was on the new load screen info with hearthfire that you can create gifts. I have looked and not found where. I did all around the forge, tanning rack everything you find around the forge. So does anyone know what I missing, or if im just so blind I don't see it. Please let me know.

What kind of gifts are you talking about? And can you give those to npc's to win their trust, friendship or marrying options?
I don't know the answer to your question though.

The Gifts i'm talking about are the new option that released with Hearthfire, you get a option to give kid/s gifts clothes/food in general as long as it has no drugs i.e moonsugar, toy swords etc. I have skipped around everywhere looking for a toy sword but can't find it anywhere. I think noticed a new load screen that said you can buy or create but the old trusty forge doesn't have a option so i'm trying to see if anyone has figured it out.

The only gifts I have been able to make are sweets from the oven. And alot of the gifts and clothes for children are in the misc inventory at shops.

you do know that moon sugar is a drug right? its like the skyrim cocaine/cat nip thats why the khajit are fond of it

if you can't give them the gift directly, did you try to put it in the childrens chest?

Awww... every time I read stuff like this, I want this DLC more.

I just hope we can get a release date soom. This not knowing is killing me!

you can make sweets and you can make daggers to give

ya i knew about being able to give them daggers, but the paper sword is supposed to open up another option of being able to train your son while the teddy which is easy to find opens a new option of play for the daughter. sorry toy sword was thinking about a different game.

Clothing, toys, sweets you can buy from general store vendors. However, I too heard you can "make" gifts, but haven't found anything to let me do that.... Yet again, Bethesda forgetting to put something into their games... Guess they're so busy with designing everything else they forgot to put in the little stuff!

I buyed a doll in a general goodstore and some clothing for the kids. You can only give the doll to the girl, of course.