Goodies for a one year old bday?

My son will be one next month and we are doing an Elmo theme so for each kid I was going to have Elmo cookies made and give them each two and then Tie a red balloon to the bag or box that I put the cookies in. I have some problems though....one place that makes the cookies wants to charge me $3 a cookie!! Thats almost $75 in cookies. Can you make cookies like this on your own??? And another problem is a child coming to the party has a peanut allergy so I am not sure if the cookie idea will work now. Any ideas beside cookies? I was going to do cupcakes but not sure if it'd be wierd since we are already having cake. I wasnt going to do goodie bags but wanna do a little something for the children.