I had a few ideas and tried them out, but nothing worked. Eventually I went for simple bling and here it is. Its fairly late and so the glue hasn't dried properly as I take the photo.
The cracker is just three strips of glitter card joined with tissue paper. Two of the strips are edged with a Martha Stewart punch and the cracker is made 3 dimensional with foam pads. The gems are from Paperchase and the sentiment is home made using Publisher and glitter.
Another one for next year :-)