A cute, modern incense holder made from air dry clay in this tutorial by Steph of Curbly. A little paint splatter and a good clear coat add a bit of a finishing touch but you could decorate it how you like. The same sort of incense holder would work just fine with oven bake clay (bake at the recommended time and temperature rather than let your clay air cure)
Looking for air-drying clay? We highly recommend Das Air dry clay, we have been using this product for over 30 years. Check out their Das White Air drying clay and their Terracotta Air drying clay version for a natural pottery feel. For larger crafts we recommend buying your air drying clay in bulk
If you are in Australia Kmart Air drying clay is also great for beginners.
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