We try not to go overboard but don't limit the number of presents. Instead we try to focus on giving presents instead of talking about the ones she's going to get. We sit down and make a list of everyone in the extended family, then we go to either a thrift store or the 99cent store and I let her pick out gifts for everyone. Even last year when she was 2 1/2 she had definite ideas about what gift should go to who. It's doesn't end up costing much, and she is so proud and excited to see her gift being opened.
My daughter's been sick on and off since Thanksgiving so we haven't had the chance to do this yet.