Hi M.,
First, take a few deep breathes and calm down. It's not the end of the world. You sound like a great mom and there are ways to make this type of transition a positive experience for both you and your child.
As a child psychologist, I can tell you that research has clearly shown that taking away an object that a child is strongly bonded to cold turkey like you did is almost always a bad idea. In particular, it tends to cause anxiety issues both in the short and long term. The main problem with forcing your child to go cold turkey is that it does cause some trauma to the child without solving the underlying issue, which is the child's strong reliance on that external object to soothe him or herself (How much trauma? It depends on the child--some children are more resilient than others. Bleeding lips, though, is a problem-but don't sit around feeling guilty, focus on solving the problem). What typically happens is that your child will eventually just find some other external object to use as an external tool to soothe themselves (in the case of pacifiers, sucking on a thumb, blanket, hand, stuffed animal, etc., is typical) instead of really learning soothe themselves using an "internal" tool.
The best way to deal with this type of issue is by using gradual exposure to not using the pacifier, and slowly increasing that exposure until the child no longer needs it. This would need to be combined with teaching your child other methods of soothing himself that does not involve an external object. Two-year-olds still primarily learn via imitation, but they are old enough to also learn from instruction. A combination of these two typically yields the best results. Turning it into a game and/or using it to learn how to be a "big boy" also makes it easier and more likely to succeed.
Begin by talking to your child about what you are about to "try" and why (again, try using the game and/or big boy approach, and remember, you need to keep this at a level your child can understand). When you start, be sure to reassure him that it will just take a few minutes and you're sure that he can do it. Choose a short period of time to do these techniques with him (say 1-2 minutes at first). Have him do the techniques with you, and remind him that it will help him feel really good and get to sleep easier. For each subsequent session, extend the time before giving him the pacifier, keeping in mind that the ultimate goal is for him to be able to fall asleep without needing his pacifier.
Create some milestones for celebration (e.g., logs of hugs, kisses, "I know you could do it", etc.) when he reaches them. For example (1) the first time he falls asleep without the pacifier, (2) the first time he falls asleep without the pacifier 3 times in a row, etc. Each milestone should be a bigger step towards the end goal.
Start with using techniques that tend to work for you. For example, many people use deep breathing to calm themselves without even realizing that they are in fact using that technique. Show your child how you use this technique, and have him do it with you. Other techniques that can also work include tensing up your muscles for a few seconds and then quickly releasing the tension, or thinking about things that make your child feel happy and relaxed. I would also start trying with short naps instead of going to sleep at night as it is typically seen as a smaller step to the child than not having their pacifier "all night".
There are a couple of key elements to doing this successfully:
(1) Do not replace the pacifier with another object. You'll just have to deal with the same thing down the road with that other object.
(2) You will need to pay careful attention to your child's reactions to know how quickly (or slowly) to proceed using this method. For each "session" you want your child to experience a small amount of anxiety (i.e., they feel some anxiety but are not overwhelmed by it). As they are feeling anxious, this is when you are helping them learn to soothe themselves.
(3) Don't give up the moment your child cries, but don't try to continue to force it once his crying gets out of control (which may happen sometimes--even small children can have bad days). If he starts crying, first try to help him soothe himself. Try to catch it at the beginning of the crying. What you don't want is extended crying (more than 10 minutes or so) or sobbing to the point that your child is out of control.
(4) Try to keep an eye out for other situations that you can use to reinforce your lessons with him on how to soothe himself. For example, if you see that he feels anxious when he first sees the Easter Bunny, talk to him and go through the techniques that you've been teaching him.
(5) This is important -- Throw out the guilt and remind yourself that you really are helping your child by going through this process.
A few more notes about this process:
Is this process easy? No, it's not. It takes a lot of patience and work, but it teaches your child invaluable lessons that will help them the rest of their lives. It also strengthens the bond between you and your child.
Will everything work textbook perfect? Absolutely not. We are, after all, dealing with another human being, and one who is a small child on top of that. Some days will be better than others, and that's Ok.
How long will this take? It depends on the child. I've seen this work in as little as 3 days, or as long as a month.
I hope this is helpful for you. Please let me know if you have any questions.
Good Luck!