We are planning a trip to Disneyworld and universal with 2 kids aged 6 and 7. We plan to stay for 8 nights.
4 days in Disney, 2 days in universal and one day rest.

My question is regarding the place to stay.

We have been to Disneyland and disneyworld before and both times we had rented a vacation home. Both my kids have multiple food allergies so we have to have a kitchen where we stay so that we can make some food for our kids.

We were wondering if we could stay in a hotel room with kitchen as vacation home seems to be an overkill as we don't need that much space. Is extended stay America near lake Buena vista the only option?

We are not sure whether to make the hotel room booking or a vacation home. Please advise.
Thanks
Njs

There is a Homewood Suites and an Embassy Suites about a mile from Disney property.

Also a Residence Inn. All of those hotels will have a mini kitchen.

http://oakplantationresort.com/
Okay, I haven't vacationed here, but I have stayed at their cheaper sister Inn right behind this resort. We were allowed to use all of the resort amenities and I thought this place was lovely. Huge pool area, large hot tub, kid play area, store nestled in between an spotless apartment looking resort. For a family I would think it perfect. Close to the parks.

The Boardwalk Villas have kitchens in one-bedroom and up options if you want to stay on Disney property and have the privileges, but they are expensive, but they will let you have 4 there. The Studios have mini-kitchens with microwave and fridge but not full cooking facilities. You're probably going to want a car for the duration of your stay, so it may be worth it to consider this since staying on-site gives you free parking (and the transportation system to the Boardwalk Villas is not optimal, so you might want to drive to all but Magic Kingdom).

There are also vacation rentals in Celebration, but I think many of the Lake Buena Vista properties are closer.

One of the "official" on-property but non-Disney hotels is a DoubleTree Suites, and the suites have a mini-fridge and microwave and coffemaker if that is sufficient for your meal needs. But not a real kitchen as in the Boardwalk Villas.