I searched google for infant costumes and infant disney costumes. I found a Snow White costume made for a newborn. I also found SW, Belle, and Cindy in sizes 3-12 months.
At WDW the smallest I could find for my DD was 2/3 in most which at the time she was just barely nearing that... the only ones that we found smaller were minnie and tink which they got a bit smaller but not too much
ETA: Just realized your girls are 2. Yes, WDW has a size that will fit 2-3.
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Original post, w/info on infant sized princess dresses in case someone else was interested:
If you go to disneyshopping.com and look in the outlet, they have some of last year's costumes available.
They have some infant sizes in Tinkerbell, generic pink Princess dress, and a Minnie Mouse. The Princess one is only $10!
At WDW, there are infant sizes available, but I really don't remember which princesses were featured. I can only remember Belle b/c my then-1yo niece was wearing it.
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