Heat oven to 350 degrees F. Cut cookie dough into 8 equal pieces. Work with 1 piece of dough at a time; refrigerate remaining dough pieces until needed.
For each cookie, cut 1 piece of dough into 3 equal slices. Place 2 slices side by side on ungreased cookie sheet; press into 3x3 1/2-inch rectangle (see photo). Place third slice on center of long side of rectangle; press slice into triangle for roof (house should be about 5 inches tall). Repeat with remaining dough making a total of 8 house shapes, 1 1/2 inches apart on cookie sheets.
Bake 8 to 11 minutes or until light golden brown. Cool 2 minutes; remove from cookie sheets. Cool completely, about 15 minutes.
Decorate with decorating icing; use cereal for shingles and candy for house features. Let stand until frosting is set, about 30 minutes. Store between sheets of waxed paper in tightly covered container.
There's no need for a cookie cutter because you form these adorable houses with your hands. Follow shaping directions in step 2.