Pour the salt into a large bowl. In a separate small bowl, combine the hot water and the food coloring.
Combine the water, food coloring, and salt, and stir.
Add the flour, and mix with a wooden spoon to combine. Then, remove it from the bowl, place it on a board, and knead for a few minutes until smooth.
Use as molding clay as is, or if you are cutting it into shapes, preheat the oven to 250 F.
Then, top with a sheet of parchment paper, and roll the dough out to till it's ⅛-inch thick. To make ornaments, cut out shapes with cookie cutters, and use a straw to create a hole at the top.
Place the ornaments on a baking sheet, and bake for 30 minutes. If you want to paint them, do that once they are baked. After the paint dries, you can seal with Mod Podge to make them more long lasting. Tie twine, string, or ribbon through the hole for hanging.