I am a huge fan of house parties and homemade cakes. Of course, my kids love the bouncy house arenas and amusement parks just as much. We've pretty much tried them all. Of course, with toddlers, you need to take care to be sure that you have the right activities and aren't expecting too much from kids who are so little and easily overwhelmed. See our suggestions for planning your child's next birthday from age one through three.
And keep in mind: there is more than one way to celebrate a birthday. What's important is making time to reflect on the amazing things that have happened over the course of one short year.