2-Bit timer with 1 ms period
Use a 74xx4060 14-bit binary counter IC, such as the 5 V 74HCT4060. This is a cheap and readily available part and uses a resistor and a capacitor to control the increment rate of a 14-bit counter.



Its 10 output counter bits are different stages of a 14-bit ripple counter. So you can choose a relatively high oscillator frequency that requires a small capacitor and high resistor, then use a divider stage that gives you your 1 kHz 2-bit value.



It uses an external resistor and capacitor to set its internal oscillator frequency.



If the accuracy of an RC oscillator is insufficient, you can use a crystal instead.