Fantastic wooden heroes

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I am baffled by this creature we discovered recently. He is clearly some kind of wooden friend. He appears to live in the log, but his head (hat?) is part of the outside structure of the log. They have adopted him as their logo, as well. I don't know what kind of childhood tales they have in Germany (I always imagined a fat, lederhosen-wearing, sausage-devouring, beer-swilling protagonist, but I picture this same character in every image I have of Germany).

Father (reading from children's book): And so, he emerged from his log...
Astute 3-year-old daughter: So, is he part of the log?
Father (sweating furiously): Well, he is, kind of like something in the log, but he is not shaped like anything in an actual log, but his head sort of fits in the bark, um, ...
Daughter: (weeping softly)
Father: Blast you, Zierbrunnen Caser!

I think I may have taken too much cold medication.

(Note to reader: He shoots water and makes a good time in real life.)

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Photos

Take me home to your garden!
I am proud to be a wooden-loggy-garden-ajig!

In all his actual glory...
Don't tell me you're confused. You are precisely aware of what this is all about.