Not long ago, Scott and Shannon Guggenheim’s 4-year-old daughter, Lily, looked up at them and asked when Santa would be bringing her Christmas presents.

“To say that we, as creators of a Chanukah musical, were shocked is an understatement,” recalls Shannon Guggenheim. “[Lily] is already feeling the pull so many Jewish kids feel. She probably went drifting off to sleep dreaming of sugar plum fairies.”

That Chanukah musical, “The MeshugaNutcracker!,” is the Guggenheims’ tuneful contribution to children like Lily, who need an antidote to the ubiquitous Christmas blitz that occurs every year.

The Fremont couple co-wrote, produced, choreographed and directed the Bay Area holiday staple. Drawing on music from Tchaikovsky’s famous “Nutcracker” ballet, “The MeshugaNutcracker!” has been a hit with Bay Area Jewish families since its 2003 debut.

Now, says Shannon, the show is expanding its reach, playing cities like Seattle and Scottsdale, Ariz., for the first time this Chanukah. That’s in addition to runs in San Francisco, San Jose, Sacramento and Los Angeles.

That’s not the only news out of the “MeshugaNutcracker!” camp this year. Six of eight cast members are new, the music has been re-orchestrated to give it a more Broadway feel, and a newly constructed proscenium arch will be in place for opening night.

“It’s an homage to Chagall,” Shannon says of the goat-and-fiddler decorated arch. “We still have the dreidel as the centerpiece. And now we have a dream cast of amazing musicians. In the past we had actors who sing. This year we have singer-actor-dancers.”

“The MeshugaNutcracker!” tells the tale of eight citizens of Chelm, the mythical shtetl of fools, who gather every year to perform at their Chanukah festival. Through the course of the two-act musical, each tells a story of Chanukah heroes from the time of the Maccabees through today.

Shannon wrote the lyrics and Scott directs, while both wrote the musical’s book based on stories adapted by Eric A. Kimmel (author of “The Jar of Fools”) and Peninnah Schram and Steven M. Rosman (authors of “Eight Stories for Eight Nights”). Stephen Guggenheim, Scott’s brother, provides musical direction.

The musical is just one mainstay of the theatrical couple. Their company, Guggenheim Entertainment, provides entertainment, marketing and support services for corporate and private clients (think “holiday show for the mall”), and their National Jewish Theater Festival develops Jewish-themed stage productions for every audience.

But “MeshugaNutcracker!” holds a special place in their hearts, largely because their own daughter fits the target audience profile.

“It’s no joke,” says Shannon. “We say it in the show: ‘Santa has the last laugh/His holiday lasts a month and half.’ I’m not saying what we’re doing is brain surgery, but it occurred to us that it’s a Jewish parent’s cultural responsibility to take their kids to this show. It’s not Tiny Tim or the Mouse King.”

Shannon, a Jew by choice, stresses that she and her husband are not engaging in Christmas bashing. “Santa is a good guy,” she says. “But Jews have something else right here in their backyard. They can say, ‘I own that and I am proud of that.'”

Although with each passing year the Guggenheims have taken their show on a longer and longer road, they are reluctant to license the musical to other theater companies. Call it creative control, call it a labor of love, but the two plan on keeping “MeshugaNutcracker!” to themselves for those eight crazy nights and beyond.

However, eternal as the lights of Chanukah may be, the holiday comes around but once on the calendar, which can be a drawback to a theater company.

“Sometimes,” Shannon says with a laugh, “we kick ourselves for having a show that’s only six weeks a year.”

“The MeshugaNutcracker!” plays 7:30 p.m. Saturday, Dec. 23, 1 p.m. and 5 p.m. Sunday, Dec. 24, and 1 p.m. and 5 p.m. Monday, Dec. 25, at the Montgomery Theatre, 271 South Market St., San Jose. Also 7:30 p.m. Saturday, Dec. 30, and 2 p.m. Sunday, Dec. 31, at the Herbst Theatre, at the San Francisco War Memorial and Performing Arts Center. S.F. Tickets: $42. Information: (877) 456-4849, or online at www.njtf.org.