For my daughter's 2nd birthday, we had an Elmo's World party. For invitations, I took a picture of her hugging her stuffed Elmo.
Then I printed the party details on 3 x 4" computer labels and stuck them on the back of her picture. First we played Pin the Nose on Elmo. I made a giant Elmo head out of red felt, and cut out ovals from orange felt for Elmo's noses. I placed a self-stick Velcro piece on the back of each nose so that they would stick to the felt. Then we played fishing for Dorothy. We filled a kiddie pool with water and I cut fish shapes out of fun foam. I attached a paper clip to the nose of each fish. The kids "fished" with a pole made from a dowel and a piece of string. The "hook" was a magnet attached to the end of the string. The paperclips would cling to the magnet and the fish would be caught. Our last game was a Fill Dorothy's Fishbowl relay. I divided the kids into 2 teams. Each team lined up near a bucket of water, and an empty fishbowl was placed 15 feet away from each team's starting point. They had to take turns filling their cup in the bucket and running to the fishbowl, where they would pour their cup of water into the bowl until it was full. After our games, the kids had Elmo cupcakes. I frosted them with red frosting, used marshmallow slices and brown M&M's for the eyes, Circus Peanuts for the noses, and I rolled Tootsie Rolls flat and cut out mouth shapes. The goody bags were brown paper gift bags that I had painted Elmo's head in red, and used wiggly eyes and orange pom-poms for his nose. Inside the gift bag each child received some Elmo stickers, a fish coloring book and crayons, a large inflatable crayon, some Elmo Band-Aids, and an inflatable fish-shaped beach ball. Everyone had a wonderful time.