For the first kid, we had family over for burgers/hot dogs on the grill, then cupcakes.
For the second kid, we had family a couple close friends, then ordered pizza and had cake, with a separate cake for the birthday boy.
I definitely recommend the pizza thing just because it was no stress for preparation and I was able to enjoy myself visiting with family and friends without having to worry about serving guests.
Schedule it when you know your kid will be happy! Both times, we scheduled guests to arrive just before we knew the baby would wake up. They woke up to a house full of people, but we had a longer time with a happy kid.