Congrats on the baby and being able to stay home to take care. That's awesome!
I agree with everyone here about taking a refresher course, making sure your license is current, and getting your BLS (ACLS would be an added benefit I think. (ACLS-ALGORITHMS.COM is the best review/practice website on the planet, by the way. 13 bucks to access for two weeks but well worth it) If you do all that you are probably in line with all the other new grads as far as job prospects. Have confidence in interviews, don't apologize for your family decisions, but make sure you come across as someone who is enthusiastic and ready to embark on their professional career. It goes without saying, but carefully evaluate your home life and make sure the jobs you apply for are ones that will work schedule wise for you and your family, because whatever job you get, you certainly don't want to quit in 3 months--then you will have a *really* hard time landing a job.
Whatever nursing skills you lost you can regain by reviewing the procedure steps, practicing them/reviewing them step by step in your head, and then doing them hands on during practicum during the refresher (make sure they incorporate skills practice). Reviewing case scenarios and reading nursing magazines can help you "think like a nurse again." Reviewing and practicing are important, at the very least for psychological reasons; so you can feel better about being as competent as possible starting out. That being said, don't be too hard on yourself as no one has that many skills mastered or has much clinical judgment right out of school anyway...There are a lot of good reviews and resources online, and in podcasts these days, and you can listen to those while you are cleaning house, laying in bed, getting ready in morning, driving, etc...30 minutes here, 30 minutes there, and the review time can really start adding up. That's helpful when you are a busy mom with a toddler. I recently bought an (online) review package from Medcram that I really like. There are a number of subjects for free you can try out to see if the format and content and such is to your liking. It's geared more toward medical students, but I find it interesting, succinct, and clinically relevant for nurses, regardless of field or experience....EMCrit has podcasts that are also medically oriented but deal with critical care in the emergency room, so not really a review, but still great listening. There plenty of nurse done podcasts as well, & I think I've seen some geared toward new grads.
Getting a new job as a nurse is an exciting but often painful transition. I've been a re entry nurse twice (three years off each time), so I have plenty of empathy when it comes to having to face interviews after being off. It has a way of working itself out, but thick skin, patience and hard work required.