Technically big bits of dyed muslin may not be "toys" but they really are fantastic. I bought them at the Michael Park Steiner School Fair last year and gave them to the smallest one for his birthday (they wrapped up his pop up soccer goal). Since then they've been used creatively in so many forms... gift wrap (for real and pretend gifts), huts, blankets, baby swaddling, costumes, head scarves, wings, as a backdrop for lego pirates, animals etc. (more photos below). The fair is coming up again next weekend and if you can make it to Auckland with your kids I would highly recommend it. It is an awesome magical day for the whole family.
The huge pegs are from Spindlewood in Christchurch, a lovely store full of natural toys and art stuff. We made the boys a wee "room" each behind the french doors. They happily sat there and had their afternoon tea and then played zoos.
masses of wrapping
as a sword belt
as a backdrop for fishy photos
as a cover on the hammock which led to vigorous swinging
a cape
a nest
wrapping for pass the parcel
and a variety of huts