Dragon’s Instinct by Elva Birch

The twos just got a lot more terrible.

Ian had enough trouble trying to write for a living and keep up with his daughter, Lucy, even before she started shifting into a squirrel. Now that she’s turning two and breathing fire? All bets are off.
Olivia is used to her cat Seltzer bringing her live trophies, but she’s not sure what to do with a squirrel that turns into an adorable little red-headed girl, or the gorgeous single dad who comes looking for her from next door. Olivia didn’t come to Nickel City expecting to be swept off her feet, or to discover magic, but the next thing she knows, she’s taking a temporary job at a day care for shifters and discovering a hidden world of enchantment and instinct.
Ian’s dragon is sure that Olivia is the one, but Ian has already had one relationship go down in flames, and he’s not sure he can trust Olivia with his deepest secret. He’s going to have to learn to control his own power in order to save her…or lose her forever.