I finally found a site that explains origin. Nothing to do with "cringle".

Krist-Kindl, or Christ-Child
The concept of the Christ-Child as a gift-giver evolved in Germany. The Krist- Kindl appeared as a substitute for St. Nicholas partially because, some historians argue, the old gent was too redolent of Rome for some Protestant reformers.35 At any rate, the Krist-Kindl was portrayed as a cherubic child (boy or girl) who travelled by mule carrying gifts. Children set out a basket, filled with hay for the mule, to receive their gifts. The Krist-kindl concept was adopted by some Pennsylvania Germans.36 By 1860, however, he/she was rarely a part of Christmas; the role having been overtaken by the jolly elf who had appropriated the name.