Hi Hoyt,
Yes the first step is 2" but the freeze plug goes in the machined bore further in, which is the 1.85 bore, the 2" step is far too shallow for it to hold the plug.
I did at first think it was the outer diameter of an old plug still stuck in there, but after cleaning and sanding it off it looks like cast iron to me.
I'm not going to bash on it in the event it is the block I'm bashing on.
Going to work on it Saturday, so will keep ya posted, thanks
Andy