I'm 22 and work as a primary school teaching assistant.
When i was in school, our Headteacher taught us this but the lyrics were slightly different...

what can you do punchinello punchinello
what can you do punchinello 42

child hops etc

we can do it to punchinello punchinello,
we can do it do punchinello 42

turn right round punchinello punchinello
turn right round punchinello 42

In the school i worked at previously, i was surprised to see the children playing this game on the yard, with the same lyrics
and the children in my current school also sing these lyrics.
strange how we have a completly different variation on the end!!