R.D.
We did this sort of thing when my almost 5 year old turned two. We have friends who have kids of all ages and not many two year olds have their own set of friends yet. His birthday is in April, so we did a painting party. What kid doesn't love to paint? We set up tables outside and had about 5 different types of paint set up...finger paints, spray paints, puff pants for shirts, etc. All of the kids loved it and we did have from 2 to about 10 at ours as wel. My husband grilled hot dogs and hamburgers, and we just had traditional type sides with it. it was very affordable and fun! We have done it several times since then :).