I've been baking with my kids since they were babies and I have learned some valuable lessons along the way (the hard way!). When people ask me how I manage to bake during the day I feel the need to explain that it doesn't come easy. Little steps and patience are the keys for me.
First, I sometimes prep during nap time things that they won't have the patience for (like slicing 3 cups of strawberries). I find getting everything out (ingredient and tool) helps a lot too. I set up on our big old kitchen table which I have long ago let any hope of keeping nice go. Seriously, this table is a God-send. I highly recommend old, crappy furniture if you have toddlers.
My motto during baking goes like this: go to Zen place. That's okay, fine, no big deal. Yes, you can lick as much batter as you like (Unlike Marc I have no raw-egg phobia). Do not think about the clean up until later! Ignore all messiness and try hard to focus on their learning, creativity and fun. Try very hard. Again, go to Zen place. Mine is an air conditioned bookstore.
Here are our strawberry muffins from the latest Body and Soul magazine. I drizzled a little icing on them, called them cupcakes and they were dessert! On days I bake I usually do not make dinner. Last night we had eggs, toast and strawberry muffins! And daddy does dishes.
If you add a little to a little, and then do it again, soon that little shall be much. -Hesiod