J.B.
We love the Melissa & Doug lacing sets AND they have wooden food sets that come with wooden "knives" he can use to cut them -the food separates by velcro. They have fruit and veggies and the cutest sushi, pizza and cupcake sets!
Also -check out Fat Brain Toys -www.fatbraintoys.com - my youngest will be two on Sunday, and we've purchased from them before for both boys. The Dado blocks are VERY cool and the stomp rocket is an amazingly cheap but entertaining device for children. They ALL love it!