My cousin made me a graduation present and gave it to me on Easter. I thought it was a neat idea, so I'm going to share it. I haven't tried it yet, but it looks pretty simple. Start by choosing a picture out of a coloring book; my cousin chose a Precious Moments girl with a graduation outfit on. Next, find some acrylic paints with your desired colors and a photo frame big enough to fit the picture on. Take the glass out of the frame, and put your picture underneath it. Trace the outline of the picture with a permanent marker (she used a black Sharpie) onto the glass. Lastly, fill the traced picture in with acrylic paints and let dry. Put the glass back in the frame with the painted side facing in. I believe she put a textured, colored piece of card stock behind the picture, which really improves the look, I'm sure. I think your picture will be the opposite direction of what it is in the coloring book, so remember that and make any necessary adjustments while tracing.
Update: Top picture is my finished product :)