This is the cutest tradition! Last week the "elf" appeared on a shelf in our living room. He "watches" Harper to make sure she is being nice, and each night he reports back to Santa. Every morning he is in a new spot and Harper has to find him. She runs through the living room shouting "Pelf on Self!" We're pretty sure she understands the concept because she says "pelf on self watch Harper." I don't think she gets the Santa part yet, but we'll do it again next year!
http://www.elfontheshelf.com