One of the greatest mistakes of our day is to think of movement by itself, as something apart from the higher functions...Mental development must be connected with movement and be dependent on it. It is vital that educational theory and practice should become informed by this idea.
This was a fun game to play- we started with two cups and a toy. I hid the toy under one of them while Indie watched. Then I would ask her where the toy was.
I extended it by moving the cups to the other side of the carpet and asking her to go find the toy. After a while and lots of giggles she started figuring out when I was "tricking" her and switching the cups.
Other extensions: use the same color cups (we used what we had but it probably would have been better with ones the same color)
use more than two cups
have them hide it