To kick off a night on the town in style, you need a place to set the mood. This is what great bars are made for. Choose one that you all know and can get to easily. Get there early and ask the manager if you can have a group of tables so that everyone can sit together. (A deposit in the tip jar works wonders.)
Luminarias, or farolitos, are simple outdoor decorations made from white paper bags with candles inside. Santa Fe and Albuquerque are known for their spectacular luminaria displays on Christmas Eve. The Desert Botanical Garden in Phoenix lines its paths with thousands of luminarias for an annual holiday event called Las Noches de las Luminarias.