We have a playroom (our living room is divided into 2 parts by a chimny & semi-wall), and I love having a seperate area for play.
We have a wooden kitchen & wooden dishwasher (Elves & Angels). We bought an inexpensive pine shelf from Micheals Crafts & dh screwed it to the wall at toddler chest level to make a counter. We also have a wooden microwave that is screwed to the wall. FOr the kitchen, we have HABA food (tons of it, it was very expensive, but a gift & is a year old & looks brand new), a pot/pan set (from Marshalls), little plastic mixer, etc. We keep the food in bins/baskets. Dd also has a plastic shopping cart (they do make wooden ones, ours was a gift) that she likes to play with.
We also have a 'baby' area next to the kitchen. It has a wooden bed & highchair for dd's babies. There is also a basket of clothes, blankets, diapers for the babies.
Next to the kitchen area is dd's doll house. It's a Plan Toys doll house w/accessories. I keep the extra stuff in a basket. (I got the doll house fully furnished with EVERYTHING for $50 when a local toy store was going out of business. It was their demo. Everything was glued down, but I just pried it all up.).
In the corner is a box of musical instruments, a xylephone, radio, etc.
On the side of one wall is a book shelf (a must IMO for play rooms) with books, various toys (doctor kit, lacing beads set, elephant flashlight), etc. Under the bookshelf is a wooden crate of puzzles. I keep a picnic basket full of soft cover books next to the books shelf & a wooden rocking chair & a bean bag on the floor near the books (although that gets dragged everywhere).
We also have a basket of trucks & one of stuffed animals in the play room.
We also have a wooden chair/table set in the kitchen, but I think those are a must have for toddlers. Great for eating at, drawing, painting, play doh, etc.
Dd also has a bookshelf in her room w/books, toys, etc. Her Little People farm & zoo are also up there.
It may sound like we have a ton of toys, but I can honestly say we didn't buy most of them. They were either gifts or free from the dump (our town doesn't have trash pickup, you bring it yourself & there is a house there to put stuff that's good, but you don't want. We've gotten a TON of stuff there including the bean bag, chairs & table set, foam ABC mat, baskets, puzzles, books, etc). We also have recieved a ton of hand-me-downs from friends with kids a few years older than my dd.
HTH