E2 is no paper but in most case there is a problem with sheet feed unit.Look carefully all printer about paper jam or pieces of paper who stuck.If this not help your printer need repair.
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Popular Solutions for Canon PIXMA MP160 All-In-One
Canon MP160 error code 2 E blinking alternately; also get Service Error 5100. I cleared out a pencil...
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Canon MP160 error code 2 E blinking alternately; also get Service Error 5100. I cleared out a pencil from the paper feed area and replaced a loose spring, but still get 2 E error when I try to print