Hi Elie, I hope you like the following idea. I will keep thinking and searching for ideas for you and hopefully some of our creative friends at FunTrivia will join us with additional ideas for you.
Birthday Child's Special Role: Allow your child to be the head puppeteer for this special day. They can be in charge of selecting the storylines and have first choice on the puppet they would like to bring to life.
Party Location: Your home will be a puppet's paradise with the right props and sound effects. If it is a nice summer day, construct a puppet stage and enjoy an outdoor gathering.
Party Professional: If you can find someone with puppet experience, take advantage of their expertise. Otherwise, hire an actoror entertainer who has strong leadership skills. You will need someone who can organize and direct each show the children present in groups of three or four.
Party Activity: The gist of this party is for the children to have fun animating their puppets while following a storyline. We suggest choosing familiar stories with a Sesame Street twist. For example, "Cookie Monster and the Three Bears." While one group performs, the other partygoers (and their puppets) can cheer and celebrate as an enthusiastic audience. Consider the ages of the children and involve them in tasks where they will feel most comfortable. Older children can become involved in sets and props while the younger ones will have a better time following the stories. Make sure you have an ample supply of puppets so that no one misses out.
Party Music: This is your child's opportunity to be challenged with the task of selecting music that correlates with each storyline. Take them to the library and rummage through tapes and CDs until you find the perfect selections. There are probably fairy tale soundtracks available. Maybe you can even find a tape or CD completely dedicated to sound effects.
Party Finale: As the grand finale, bring each party guest forward and reintroduce their puppet to the audience. Add your own loud cheers and standing ovations to create the most festive environment possible.
Party Table Setting: In the spirit of Sesame Street, place a homemade Sesame Street sign with balloons tied to the post as a centerpiece. Use Sesame designed tablecloths, napkins and plates.
Party Food: Order a cake in the design of your child's favorite Sesame Street character. And set out "Cookie Monster" cookies for the partygoers' chomping pleasure.
Party Favor: Again, make certain that everyone has a puppet that they can love not only on this special occasion, but for a long time to come. Try to have a variety of choices to suit everyone's tastes.
Source: http://209.11.56.13/html/sesame_street_.html