Christmas ideas in or near Bavaria?

This isn't current info by any means, but we spent a Christmas in Bavaria with young children some 30+ years ago. Relatives were living in Bad Tolz, a beautiful "spa" town south of Munich, at the base of the Alps. I suspect it's still a worthy destination. Plenty of lodging options and restaurants. Munich is easily accessible by car or S-Bahn from nearby Holzkirchen. There's much to see in the area. You should get plenty of other suggestions. Hard to make a mistake that region, it's got "fairytale" from top to bottom. You might want to look at some of the smaller towns/villages a bit west and closer to Mad Ludwig's castles (Oberammergau, Garmisch-Partenkirchen, etc.) Google "German Christkindlmarkt" for the famous holiday markets. Munich's may be the most famous, but there are others. (I think it unlikely they'd be open on Christmas Day, but probably going strong on Christmas Eve.) Sounds like a great holiday reunion.

Nuremburg is famous for its Christmas market, one of the best in Germany, very fairytale. It starts (like all Christmas markets) on the last weekend in November, and ends 2pm 24th December. make sure you don't miss it.
Website: http://www.christkindlesmarkt.de/en/

The Christmas Holidays are part of the greater school and ski holidays for Germany. There is no guarantee of snow this time of year other than man made on the slopes. Ski areas will be packed and many places require a minimum of a week stay. Not sure there is such a thing as a "Fairytale Christmas,'" and by this time many of the Christmas markets and such are finished. You should be able to get a Christmas Goose dinner with reservations ahead. Maybe something in Mittelwald, the Zugspitx Arena or Zillertal, AT? No old city here but Pertisau an the Achensee in Austria? From Nuremburg something in the less touristic Bayrische Wald?

Most Christmas markets close Christmas Eve afternoon. If do you have time before then there are many Christmas markets to enjoy and your daughter will be hearing from her colleagues and friends their favorites. I spent one Christmas in Salzburg and truly enjoyed the Christmas Day mass at the Cathedral. You need to arrive early to get a seat. My own favorite markets include cologne, Strasbourg, rothenburg ab Tauber, and of course Nuremberg. You are in for a treat!

Most Christmas markets do not close on the 24th, they close on the 22nd or 23rd at the latest. Very few are open on the 24th. People working the stands want to be home to celebrate by the 24th.

Stores will close on the 24th by 1300-1400, and most restaurants will either not be open at all on this day or will also close by early afternoon. The 25th and 26th are official holidays and stores will stay closed. Museums and tourist attractions may or may not be open. Check their websites. Restaurants do a booming business on both of those days and reservations may be needed.

We were in Munich over Christmas this past December. We spent Christmas day in Saltzberg (Christmas Market was still open) and visited the nearby salt mines (open on Christmas day as well). For the 26th, we visited nearby Dachau as it was open. Not exactly close to Nuremberg but...

Thanks to everyone for your replies. There are some good suggestions! We know all about the Christmas markets, and are looking forward to them, but they close on the 23 or 24th. I was really asking specifically for interesting things to do on Christmas Eve & Christmas Day as everything is closed. It's too early for towns in the German Alps to have their Christmas programs or packages out yet so thought maybe someone here would have an idea of things to do. Salzburg sounds interesting! I have heard that some towns have sleigh rides on Christmas Day. Can't seem to find any more info than that. Any more ideas?