I like to encourage reading, so instead of television character parties, I try work a theme around characters or stories from books.  For my son's second birthday I plan to have a Goodnight Moon birthday party.  Since I don't sew so well, I will make a red and green stripped curtain from a big piece of paper and tape it to the side of a real window or maybe draw the window too and that way I can put a moon and stars on the outside. I will also try to draw a fireplace out of a big piece of paper and tape to the wall.  I will also have everything from the room (table, comb brush, rocking chair, two stuffed kitties, dollhouse, red balloon etc.).  I will either photocopy or try and draw the pictures of bears sitting in chairs and cow jumping over the moon pictures and tape to wall also.  We have a futon in the room we plan to use so I will unfold that and put a big stuffed bunny in the bed.  For games I plan to hide a little stuffed mouse in different places in the room (just like in the book) and have the kids try and find it several times. We also have a Goodnight Moon Board game that the kids can play with and I will read them the book, of course.  Another possible game is pin the tail on the bunny.  I will use bright colored tablewear (green, red, blue, yellow) to match the colors in the book. There will be lots of red balloons around to decorate and the streamers will be green and yellow to match the curtain in the book. Instead of a cake, I like to have cupcakes and let the kids decorate their own with different candy, fruit, and nuts. I hope to find some moon and stars sprinkles as well. Make sure and ask the kids "Okay who wants a bowl full of mush and who wants cake?".  If you wanted to do a cake, what could be easier than having a round cake with yellow frosting for the Moon.  For party favors I will try and gather many moon and stars things to give out. If most kids don't already have the book, I will give them their own copy.  Maybe their own stuffed mouse to take home and hide at their house. Possibly a pretty little childs comb and brush too.  I will put it in a black or dark blue lunch sack with a white moon and stars glued on all over.