First, good for you for staying involved!
I would not recommend too many Christmas related gifts for a two-year-old because it is about over by the time the gift is opened. It is better to give Christmas gifts like Nativity books, figures, clothes, and stories for St. Nicholas’ day on December 6 in my opinion. Then they can be appreciated throughout the Christmas season.
For other gift ideas:
An icon of his patron saint.
If it is a common saint like Matthew, Mark, Luke, John, Patrick, Michael, or Nicholas, a child’s book about his patron. Less common names are not as likely to have children’s books written about them. If you want, you can add a CD, DVD, or MP3 of you reading the book.
A children’s religious music CD. There are a wide variety available.
Catholic coloring books. They come in every theme, so you can match it to the rest of the gift if you want. A large wooden-beaded children’s rosary with a rosary coloring book. A picture Bible with a coloring book about the Bible. An icon of his patron and a coloring book about Mary.
You can also get a regular toy and make a connection between the toy and a saint. You can get a religious book, figure, or coloring book on the saint as well or you can make the connection in your inscription or card. “May you grow to be a great fisher of men, just like the apostles!” with a gift of a fishing game. A sword and shield with St. Michael. Blocks and St. Peter. A boat or animals and Noah. Learning toys and Aquinas. A truck and St. Christopher. St. Anthony or St. George and a ride-on or play horse. Cosmos, Damian, Luke, or Raphael for a doctor kit. The list is endless!
A priest doll. Little boys need role models, too. Who better to nurture and carry around than a priest doll? That would be my first pick. Get a boy baby doll at your local store and ask the child’s godmother to give the priestly vestment. (Have her get the pattern first so you can get a doll of the right size.) She can either make it herself from a pattern or pay someone a little more to make it. She should be able to pick up a doll clothes pattern for a couple dollars at a fabric store, pick up a yard or less of a cheap black material like wool for under $5, a piece of white felt for the collar for 33 cents, and if she knows how to sew she could probably finish it in one day. Or if she’s more adventerous, she can do a full cassock, alb, or traditional vestment from a pattern like
these. You each pay under $10 or $15 and your godson has a wonderful, homemade Catholic gift he can love for years.