On www.onestepahead.com there are arts and crafts activities for two year olds. I bought the one that has four animal cutouts and it comes with a glue stick and all sorts of stuff (stickers, feathers, colored papers, crayons, googlie eyes, etc) to decorate it with. It was around $12 and came with four cut outs. My daughter loves it.
My daugter, who is two, also loves to "help" me around the house. I have her help me "wash" the dishes. I put her on a chair by the sink and she washes stuff and loves to do it. We also sweep and mop the floor together. If you have a swiffer you can take apart the top part of the handle and it becomes kid sized. I put a swiffer duster on it and she sweeps the floor. then when we mop I pretend to get it wet. It is great because she has fun and I get some cleaning done.
I bought newsprint paper pads at Michaels (big pads of blank paper relatively cheap) and we use those to paint on. I bought her paint brushes and I put the paper on her easel.
Malls are great too. They can play on the cars or if there is one with a PotteryBArns kids they are allowed to play with the toys there. Check out libraries and Barnes and Noble and Borders.