Let C(d,k) and AC(d,k) be the largest order of a Cayley graph and a Cayley graph based on an abelian group, respectively, of degree d and diameter k. When k=2, it is well known that Cfalse(d,2false)≤d2+1 with equality if and only if the graph is a Moore graph. In the abelian case, we have ACfalse(d,2false)≤d22+d+1. The best currently lower bound on AC(d,2) is 38d2−1.45d1.525 for all sufficiently large d. In this article, we consider the construction of large graphs of diameter 2 using generalized difference sets. We show that ACfalse(d,2false)≥2564d2−2.1d1.525 for sufficiently large d and ACfalse(d,2false)≥49d2 if d=3q, q=2m and m is odd.