You Choose is fantastic - my 3yo DD also adores it.
We bought her a lovely Melissa & Doug sandwich making set for Christmas. I'd definitely recommend it. She loves running a sandwich restaurant for us all
Rather than one big toy, the other thing I would do is spend the money on lots of crafty things: paint, coloured and plain paper, scissors, pens, pencils, scrapbooks, stickers, glitter, pipe cleaners etc. My DD gets through loads of it and its by far her favourite thing to do.
I have a 3 year old DD. She loves all of these -Disney Bowtique Minnie Mouse set -Play Doh ice cream maker -Playmobil - Barbies -craft kit with stickers, gems, feathers etc or sticker books -dress up clothes or accessories - pop up play tent - animal pillow - puzzle - kitchen play set & food - moldable bath foam, kids bubble bath, bath crayons