Playdough can be fun for toddlers if you can keep them from eating too much of eat. ;) Cookie cutters, toothpicks, and extruders can all be fun. I've discovered that even at a very young age (before their 2nd birthday) they often understand the concept of baking food in an oven so you can create another fun activity for them by letting them pretend to bake playdough in a toaster oven. You can pickup a second hand toaster oven really cheap at a thrift store or yard sale or even along the curb (like I did) if you're lucky. I removed the power cord from mine so there is no possibility that they could ever plug it in the wall.
Recipes for
homemade playdough.