While Google Android 1.5 "Cupcake" just started rolling out to T-Mobile G1 users, Google is already working on the next version of its operating system for mobile phones. Google Android 2.0 is carrying the code name "Donut," and today Engadget got to check out a demo of some of the new features that will be included in the update.

One of those features is a new "Android Search" tool that will let you search both locally and online at the same time. In other words, you can search your contacts, calendars, music, and any enabled application installed on your Android device at the same time.

Donut also includes a text to speech API. You can find more photos from today's demo at Engadget.