chica,
I hate to burst your bubble, but the odds of having a white Christmas in Toronto are only about 50/50. Free public skating will definitely be available on the outdoor ice surface at Nathan Phillip's Square right in front of city hall.
That being said, Toronto is a very large city with a ton of stuff to see and do.
Toronto can be a pig to drive in at the best of times, but out-of-towners can find it particularly challenging. Parking in the downtown core is sometimes difficult to find and always pricey. A great alternative is to find a hotel in the downtown area and make use of the excellent and extensive subway/bus system known as the TTC. Investigate the possibility of family, day, holiday discount passes for the TTC.
The downtown area offers the Royal Ontario Museum and the Art Gallery of Ontario, while the Ontario Science Center at Don Mills and Eglinton is particularly suited to kids of all ages.
The Eaton Center is a very large mall located in the downtown core. Another shopping option is Yorkdale Mall located in the north end of the city, but accessable by public transit.
A visit to
tourismtoronto.com will likely help.
There are plenty of hotels in the downtown area, and their prices vary greatly. The perfect hotel for you depends on your budget and your expectations. I'd advise doing a little research on
Reviews of vacations, hotels, resorts, vacation and travel packages - TripAdvisor .
Restaurants abound in Toronto. You can literally sample any cuisine you wish.
If you'd like personal reccomendations, please PM me.
Have you considered Ottawa as an alternative? There is a greater chance of snow on the ground, and the Nation's Capital offers numerous national museums.