The short answer: I don't.
I wish I had saved a response to another SAHM who had the same lament, but I will try to say the same thing here.
The fact is that you don't actually have "more" time when you're at home. You have "different" time. The reality is that you can spend your whole day picking up and the kids will go right behind you un-doing everything you've done. And you can spend time doing laundry only to have your 3 yr old pee on her bed and have to change bed sheets and do another load of laundry. So, instead of getting the dishes done, or possibly relaxing (what's THAT?), you've been sucked into another chore...
The first thing I had to learn when I came home after having my second is that I had to adjust my expectations. Yes, you can do some housework, but you can only expect to do ONE thing per day. If, by some miracle, there's opportunity to get 2 household tasks done in one day, you will seriously have to weigh that opportunity against the opportunity to eat your lunch or shower without interruption.
In a day, I can likely expect to vacuum, but not mop. I might be able to accomplish light dusting before I vacuum, but I'm not holding my breath. I only JUST figured out that I can take a bottle of Fantastic and a roll of paper towels with me to the bathroom when my 3 yr old is taking a bath and I can clean the bathroom while she plays in the tub. I actually cleaned one bathroom TWICE in a month. Definitely an accomplishment since it's usually 6 weeks or so between cleanings (or a frantic clean-up minutes before company arrives).
Laundry and dishes are the never-ending chores, so the goal is to do one load of laundry most days of the week. ONLY one load. In reality, I will put a load in the washer one day, move it to the dryer the next day when I add another load to the washer, on the third day that initial load makes it into the laundry basket, and I dress the children in the laundry room for the next couple days....
Dishes -- UGH! -- I do them once a day. Yes, we put plates, etc. in the dishwasher after meals, but as far as scrubbing pots and pans and any major kitchen cleanup, it happens once. You have to pick when that can happen. For a while it was at night after the kids went to bed, but that was cutting into my time with my hubby. Now, he either helps with kitchen cleanup at night, or I just do it all after breakfast when the kids are playing happily on their own (it took me a while to realize this was just their natural play time during the day when they didn't need me to interact with them).
Picking up toys is another never-ending task. We have lots of baskets and storage bins and we pick up once a day, maybe twice. We used to pick up before nap, then once again right before Daddy came home (mainly so he could have a path through the living room). Now I toss it all in containers some time around 4:00 and let them have the sacred hour of DVD watching or play outside.
Oh, and they also get the last half hour of sesame street in the mornings so I can prepare lunch.
Family meals? Ha! You only THOUGHT you'd get to cook!! I use my crock pot as much, if not more, now as when I was working full time. In fact, this is why I started the 4:00 video hour, so that I could pick up a little and get dinner started.
Of course, the children tend to melt down about the time Daddy is due to arrive, so after his comment about "it makes me not want to come home" I had to come up with a way to have happy children at the worst hour of the day. So, we agreed that dinner didn't need to be ready when he arrived, that it was more important to arrive to a peaceful house. So I will often stop dinner prep to get on the floor with them and play, or take a walk outside, or race cars across the floor, or whatever. Those few minutes of "mommy time" right before daddy gets home make a WORLD of difference in their moods. Then, daddy happily takes them on to play with them, etc. while I finish dinner.
This is all kind of out of order, so I hope you follow....
But I also realized early on that there is a direct relationship between me spending quality time with the kids and the cleanliness of my house. More of one means less of the other.
You also want to remember that you still have a baby in the house. The first year of a baby's life is a hard time. They are really needy, and take more time than you realize.
And it's hard when you need to sit down to feed the baby, because that's the moment your older child will call out needing to potty or need some sort of attention.. We watched way more TV in the first year after my son was born, but it was the only way I could sit and feed him without having to worry about what my daughter was doing. I found myself coming up with a list of ways she could be occupied while I tended to the baby. In some instances, like diaper changing, she could help. Other times, she'd watch TV, play with the leap pad, have a snack, or play on the computer (www.starfall.com or sesamestreet.org).
But regardless of the various coping methods, it was still a hard year.
It helps too if you can figure out when to have time for yourself. Maybe there's a time when the kids are napping at the same time. Maybe your daughter can play alone in her room for 20 minutes while the baby takes a morning nap. I know that long after my daughter dropped her morning nap, I still enforced a "rest time" while the baby napped in the morning, just so I could have a minute of peace!
Anyway, I hope this helps. You're not alone out there!