I took both of my kids there when they were around that age, and they both liked it so much from their initial trip on that it is always the restaurant they request whenever we go back to Disney World. Your 2 year old will love the look of the hotel, and the animal viewing areas, so make sure to show up well before your reservation time.
As for the food, there is some more adventurous options, but most of the offerings are just good quality food that is freshly prepared right in front of you. There is also a "kids" section, with safer picks such as chicken tenders. The desserts will be very popular with all ages.