From time to time CurlyGirl will ask for the shadow puppet sheet to be set up. She enjoys using the card board cutout boy and girl we made a while back, along with her dinosaurs and whatever other toy makes a good shadow. For now I just take two kitchen chairs and set them not quite a meter apart, then drape a white single bed sheet over them. They are set across from a bookshelf so that I can place a desk-lamp on the shelving to shine on the sheet. She then sits in front of the sheet and makes up stories.
Shes learning about narrative, distance and shadows and having fun. I may end up buying or making her some hand puppets and make a little pack-down "theatre" or stage as she seems to enjoy puppetry of various kinds. But I've had a hard time deciding if it will be a large canvas sheet with a cut and sewn window, or a booth-with-red-curtain type of deal.
It would be amazing fun to make puppets and a puppet theatre with kids old enough to make it a project!
I like this one from kojo-designs.com, and i'll probably be making my own version of it with different colours and a wider window. Its adorable!!
She has a tutorial here