Hi MistyD,
I have been in this same situation. My youngest daughter also repeatedly cried with Santa and the Easter Bunny. I didn't think she would enjoy being near the characters, but I went ahead and made the character meal reservations because I knew her big sister would love meeting with them. At the time, I figured I would just keep my little one on my lap and let her sister have fun with them. Well, I was wrong. I was so happy I made those reservations! My little one LOVED seeing the characters! We started with the afternoon parade in the Magic Kingdom. She sat kicking her feet against her stroller screaming Mi, Mi, Mi for Mickey as he passed by on his float. Then at dinner, I couldn't have been more surprised when she reached her arms out to them for a hug! I realized then that meeting characters in Disney World is very different from seeing Santa or the Easter Bunny in the local mall. In the malls, I would help my children up onto the lap of a stranger and then step back so a picture may be taken. Looking back, this actually sounds kind of scary!
This is definitely not the case in Disney World. At Chef Mickey's the restaurant simply looks happy with fun colors and Mickey cut-outs on the walls around the room. Your daughter will get to go up with you to the child sized buffet and pick out what she wants to eat. There is exciting Mickey Mouse music playing in the background and every fifteen minutes they begin a celebration. During the celebration everyone waves their napkins in the air and the characters will dance through each of the rooms. Your daughter will probably have her first glance at them during this time. If she is enjoying the music and waving her napkin I think the chances are high that she will want to meet the characters when they later visit her at your table. When the characters do come to visit she will be comfortably seated with her family enjoying a nice dinner. They will first wave hello and if she is receptive they can stand behind her so you can take a picture. The characters are excellent at "reading" children. If your daughter is uncomfortable around them they will take the hint and move on.
To help build her excitement for your trip. I would recommend introducing her to the characters as they look in the parks. You can find some real character footage in the free WDW vacation planning video. (you can order this for free from the Disney World website.) You could also purchase a Disney “Sing Along Songs” series DVD where lots of characters sing and play with children. (I just found some on
amazon.com)
I should mention that Disney World also has many “face” characters. The princesses, Mary Poppins, and Alice, for example, do not wear head covering costumes. These characters are also allowed to speak with children. While some children prefer meeting with face characters, I really believe with a little preparation your daughter will love the Chef Mickey's experience and will leave wondering when she will get to eat at Mickey's house again.
I hope you have a wonderful December vacation and that you really enjoy the planning and excitement that can happen leading up to your vacation. You will love Disney World in December. The parks look so beautiful when decorated for Christmas. Enjoy your trip!