We decided on a Pancakes and Pajamas party for our daughter's 2nd Birthday Party.
It was perfect for her because:
1) She loves pancakes! And by love, I mean the first thing she does every morning is get out the syrup out of the pantry and say "Pancakes!"
2) Having a breakfast party in the beginning of the day is perfect for 2 year olds who still nap in the afternoon
3) It's a relatively cheap party idea. You can feed a lot of people on pancakes and other breakfast items without spending a portion of your kid's college fund.
4) Any occasion to serve coffee and mimosas is always very much appreciated by adults.