Hello, Abysmas
Of course you'd like to give your daughter a wonderful celebration for her second birthday -- and yes, she will be a bit better able to appreciate a party this year than last. But tread carefully here, because at 2, she's still very young and won't need a blowout bash just yet!
If she has a little circle of friends, perhaps in the neighborhood or from any playgroups, by all means plan a small party for her. Or, if you have family members who want very much to share in this special celebration, plan an event. But you'll probably want to keep it fairly simple this year, realizing that the best birthday party years are still to come.
I do agree with another mom's suggestion that The Little Gym is a good choice for a party for 2-year-olds, who can run ande bounce on padded mats and have a tumbling good time, and my experiences with The Little Gym party programs have been very positive. But professionally-staged parties in venues such as The Little Gym carry a hefty price tag, and as a professional party planner, I don't recommend that moms spend that money on a party for a 2-year-old. The exception to this would be for a 2-year-old having a party attended by a group of older children of different ages. In some cases, a 2-year-old is the youngest child at her own party, because her siblings, cousins and neighbors are all older. In that case, a gym party is a great choice. Gym parties usually work well for mixed gender and mixed age groups.
A small home party focused on something that your daughter absolutely adores, whether it's a TV character or an activity or a favorite book, with just a few good friends, would be the perfect option this year. Next year, when she turns 3 and her circle of friends grows along with her individuality and interests, you'll probably want to stage a slightly more elaborate party.
The ideal age for a blowout birthday party for a young child actually is from 5 to 7, so with that in mind, try to hold off a few more years on the expense and effort.
My web site, www.askthepartyfairy.com, offers free party planning advice, tips and strategies to moms planning home birthday parties, and I also answer individual questions there free of charge, so please let me know if I can help you brainstorm more detailed ideas for your daughter's party. :)