I didn't really have a favorite toy, but I did have a stuffed Pikachu plush that I was obsessed with. It made sounds when you pressed the button on its paw. XD; Some people might remember it ahah, but sadly I gave it away to my mom's friend's kid a few years ago (though I'm pretty sure he got over Pokemon now, he stayed over recently and seemed like he was more into that fancy technology). There was also my Blue from Blue's Clues toy, I took her with me everywhere.
I wish I were able to collect all of those tiny little Pokemon figures that were sold for 75 cents back then in pharmacies and other stores. What you got was random though and mom refused to buy me too many. ;_;
I'd definitely give my stuff to my kids if I had any, as hard as it is to part with my lovely toys since I'm a child at heart!
I can't answer that last part though.. as a toy lover, there really isn't a single toy I can pick.
(This makes me just the slightest bit sad tbh XD;)