[In] 7000 BC Jericho, the dead were often buried beneath the floors of houses. In some instances the bodies were complete, but in others the skull was removed and treated separately, with the facial features reconstructed in plaster. The removal of the skull from the body and its separate burial was widely practised in the Levant during the seventh millennium BC. As in this example, the lower jaw was often removed and then, carefully and sensitively, the skull was remodelled with plaster to build up the facial features. Shells, either cowries or, as here, bivalves, were set into the empty sockets to represent the eyes. The skull was decorated with red and black paint to depict individual characteristics such as hair and even moustaches. It is possible that this practice was part of an ancestor cult. Similarly plastered skulls have been found at sites in Palestine, Syria and Jordan.Specimen and text from the British Museum, via Scipsy.
Addendum, courtesy of an anonymous reader:
According to Genesis 31, Rachel takes the teraphim belonging to her father Laban when her husband Jacob escapes. She hides it in a saddle bag and sits on it when Laban comes looking for it, and claims that she cannot get up because she is menstruating.(Wikipedia "Teraphim")
According to Targum Pseudo-Jonathan, Teraphim were made from the heads of slaughtered first born male adult humans, shaved, salted, spiced, with a golden plate placed under the tongue, and magic words engraved upon the plate; it was believed that the Teraphim, mounted on the wall, would talk to people. During the excavation of Jericho by Kathleen Kenyon, evidence of the use of human skulls as cult objects was uncovered, lending credence to the Rabbinical conjecture. The implied size and the fact that Michal could pretend that one was David, has led to the Rabbinical conjecture that they were heads, possibly mummified human heads