Children are working on their fine motor skills when cutting and picking up cookie cutters and pressing them onto their bag. When children use their fine motor skills they are strengthening the muscles in their hands for being able to hold writing utensils; and coloring or writing with them.
Depending on the colors of paint you use children will be working on color recognition as well. Talk with them about the colors they see. If you would like to do more on color recognition I have a great video you can use! You can talk with children about the shapes of the cookie cutters you are using and they will be working on shape recognition. Here are more videos on shape recognition
Take it a step further and teach the children how to hop like a bunny by using my Children’s Exercise/Hopping Video. Hopping is a great large motor skill and helps your child work on balancing and coordinating their body.
If you’d like to make your own bunny you can watch this video along with this pattern!