Yeah, you should be able to use TinyUmbrella
to do a local restore. This doesn't use the internet since it makes your computer into a restore server. You will need to grab your SHSH blob files and the firmware IPSW file prior to doing it though, as TinyUmbrella needs them on your computer in order to do the restore. Click here
for a step-by-step guide on how to restore using your SHSH blobs and follow the TinyUmbrella method.
^^ That is assuming you have an MC model iPod Touch 2G. If you have a non-MC model Touch, then you don't need SHSH blob files for 3.x firmware, which means you don't need to use TinyUmbrella for an offline restore.
-Download the firmware IPSW file you want to restore to -- Click here
-Put your iDevice into DFU mode -- Click here
if you're not sure how
-Go into iTunes and hold Shift and click Restore
-Locate the IPSW file you downloaded and click OK