I would be buying her a really nice/special book, and then make the time to read it together. Alternatively you could buy one special piece for her bedroom, eg when my DD turned two I bought her a handmade wooden teddy-bear shaped chair, that she sat on and used for years. We still have it and very occasionally she tries to squeeze her butt into it (PMSL she's 10 yo and getting hips now). Things like her own special chair, or a little treasure box, or a cuddle cushion, or a handmade quilt (lots on ebay ).

BTW you feeling of overwhelmed-ness with DD1's toys and 'things' could be helped if you do a huge cull. Just because ppl gave them to you doesn't mean you have to keep them. You could sell on ebay and bank into an education savings account, or even give away to those less fortunate. The feeling of freedom after this sort of clear out is amazing, you will find your kids play more with the toys they have when they're not swamped by too much, kwim?