You could be writing about my little cherub (ahem), she's slightly older, now 2.5 years old, but the probs started just after she was 2. She used to go to bed like a dream, we'd put her in her bed and kiss her good night and off we went. Then BOOOM! Horror child appeared. One night she kicked off and from there on in, she was horrendous. I read up on it, put messages on here, felt like I wanted to run away and hide from my sodding child. Someone suggested we do the 'place her back in bed and walk away until she gets the message' - We tried that one night 72 times, going up and down. I was 8 months pregnant and it nearly killed me. We too had to sit there and read, with her demanding strokes, cuddles etc. As soon as you stood up off she would go. She simply would not stay in bed, and would come straight downstairs, shouting and screaming like a child possessed.
One thing I do regret is putting her in her own bed at 2, and taking the cot away - with my 2nd, he'll stay in it till his feet poke out the end if need be.
In the end, after trying all these methods, none of which really worked I spoke to the health visitors - they suggested really sticking to the routine, which I did, but I cleaned her teeth and put pyjamas on downstairs - now, at 7 she goes up, gets pyjamas on, cleans teeth, straight to bed and has story and kiss goodnight. She also has a gloclock, which the health visitor suggested (not really worked for us as she couldnt' give a damn what it says), but she has improved and for a few weeks has been really good, although last night she tried it on, but luckily didn't get out of bed.
I think it might be a phase.
My husband didn't really help matters as after a while i discovered he was cuddling her to sleep as was his mother (who openly thinks I'm a cruel mother). I soon put stop to this, as he works away and I'm left dealing with them on my own.
It's totally knackering and I have shed many tears, it to took it's strain on our relationship - it's hard going, but I would say it will get better. Speak to the health visitor, it's a local person who can listen whilst you get it off your chest, and they might be able to suggest something.
One thing which REALLY annoyed me was when relatives/know it alls would say "Just dont' put up with it" or "I wouldn't have that" and so on, what can you do, as I'm sure knocking them unconscious to sleep is illegal. It will pass, hang on in there.