Welcome to the DIS!!
There is so much information available on this site it's unbelievable. I'll admit I'm far from a seasoned veteran but do know a lot from these boards and my multiple trips to the World.
As far as places to stay, it all depends on your budget. For us and because we can now afford it, we are staying at Deluxe resorts that are in close proximity to the Magic Kingdom (MK). We have a 5 yr old son and so we spend most of our vacation between the resort and MK. Last time we stayed at Wilderness Lodge (WL) which is just s short boat ride to MK. This year we will be staying at the Poly for the even closer proximity to MK and so that we can watch Wishes from the beach instead of having to be inside the park with the massive crowds. But as a previous poster said, convenience costs more than say a moderate or a value resort. So you need to look at your budget and see what you can afford.
Some the best character breakfasts for a 2 yr old are probably Chef Mickey's, Crystal Palace and O'Hana. Both Chef Mickey's and CP's are buffets. O'Hana is family style. The only one of those we haven't done is Crystal Palace but might try it on our trip this year.
I'm not a huge fan of Animal Kingdom (AK) and haven't stepped foot in the park since 2006. You'll probably have a stroller so it won't be an issue for you but it's a huge amount of walking. It's very hot inside the park as the vegetation doesn't allow much of a breeze and there isn't a whole lot of shade. That being said, everyone should do it at least once. DS didn't really care for AK just because there isn't a whole lot to do. There are a few shows and a few rides but it's mostly the animals.
We like Disney Hollywood Studios (DHS) but only spend about 1/2 a day or so in the park. Our likes it better as he's gotten older because he can ride ToT (Tower of Terror) now. But a lot of what's in DHS is shows and they're pretty entertaining.
Our 2nd favorite park is Epcot. There aren't a whole lot of rides in Epcot but there's still lots to see. And to eat your way through World Showcase...mmmm.
The 2 guide books we use religiously are the Passporter, mostly because it is geared towards families with kids and gives an inside scoop on the best things for kids. The Unofficial Guide is good but it has A LOT of info that at times can be overwhelming but even so it is awesome to have on hand because if I can't find it in the Passporter, I can find it in the Unofficial Guide.
Good luck planning your trip!!! You will have a blast. And just a fair warning, WDW is addicting and so is the DIS!!!