Start with a small paper plate as the base. Paper coffee cup for the house, the coffee lid is the balcony (with a hole cut out), a little electric light is the light, plastic cocktail cup as the glass with a little black roof cut out of black construction paper. I love the red tip which was red paper carefully rolled to create a long stick and then cut into about 1/2 an inch and poked through the top.
This is a circle of black construction paper with a straight cut to the center. The edges overlapped slightly to create a peak and the red roll of paper (1/2 inch) was poked through. It was then glued on a plastic cocktail glass.
Here is the real lighthouse at dusk (photo by Child #1)