Classical, interferometric, optical lithography is diffraction limited to writing features of a size lambda/2 or greater, where lambda is the optical wavelength. Using nonclassical photon number states, entangled N at a time, we show that it is possible to write features of minimum size lambda/(2N) in an N-photon absorbing substrate. This result surpasses the usual classical diffraction limit by a factor of N. Since the number of features that can be etched on a two-dimensional surface scales inversely as the square of the feature size, this allows one to write a factor of N^2 more elements on a semiconductor chip. A factor of N = 2 can be achieved easily with entangled photon pairs generated from optical parametric downconversion. It is shown how to write arbitrary 2D patterns by using this method.