I have bought several Waldorf-style dolls (three girls in our household) on eBay for $20-50 each, which is half to one-fifth the price of Magic Cabin. Most are made by WAHMs. Go to eBay and search for "Waldorf Doll" and keep looking. Availability seems to go in cycles, usually there are a lot for sale in fall when most people are shopping for Xmas. Some people have a vague idea of what Waldorf is though, I've seen some ugly ones, but truly some masterworks too.
Regarding plastic dolls: don't stress about it. Eventually your child will lose interest in it and you can tuck it in a closet and then later donate it to charity. Trust me, my children have given away as many toys as they have kept and they do get over it and forget about it. Now they actually look forward to getting rid of things because there is less mess to clean up in their rooms each day.
For a two year old, I wouldn't get a fancy Waldorf doll with long hair and lots of clothing. The doll will spend most of the time naked anyway, if my children are any barometer! Look for the kind with a colored velour body with minimal hair to get tangled up, usually they come wearing nothing or an apron, which is about all a toddler can handle anyway.
If you are looking for a nice plastic doll, I highly recommend Corolle's "Poupette" line of toddler dolls. Very soft bean bag body and soft plastic limbs and not bad smelling. The clothing is very simple and has Velcro. The hair is short and comes with a little brush of a good size that my little one likes to use on the doll and herself. I got mine on Amazon before Christmas for about $25. Full price I think is about $40. They are the nicest plastic dolls you will find. My toddler likes to snuggle up with her Lulu every night.
Wishing you fume-less days,
LeeAnn
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