My dd is 2, too. Here are our craft-mainstays.
-Stickers of all sorts. I gave her some white labels, and it was fun to make our own stickers.
-Stamping.
-Painting (fingerpaints, watercolors). You can find things around the house to paint, like rocks, pinecones, or even other toys that have lost their appeal.
-Making crayons (but that was mostly watching.) Homemade crayons are awesome!
-Sidewalk chalk.
-Bubbles.
-Bath paints.
-Face paints. We were at a childrens museum in MA that had these fabulous face crayons that you dip in water to 'activate'.
-Decorating cookies.
Playsilks are colorful silk squares that can be used for any kind of imaginative play. Silk feels nice, takes color easily, is durable, and light. Green makes great grass, blue is water, all work for capes, we like to throw them, tie them in long ropes, hide under them, get wrapped up in them (play caterpillar, then spring out into a butterfly), hats, skirts, aprons. We have a bunch and use them a lot. They're also fun to make. I buy 33" square Habotai scarves and dye them myself. There's a great thread in the toys & dolls board about making them.