We propose to use two-body regularized finite-range pseudopotential to generate nuclear energy density functional (EDF) in both particle-hole and particle-particle channels, which makes it free from self-interaction and self-pairing, and also free from singularities when used beyond mean field. We derive a sequence of pseudopotentials regularized up to next-to-leading order (NLO) and next-to-next-to-leading order (N2LO), which fairly well describe infinite-nuclear-matter properties and finite open-shell paired and/or deformed nuclei. Since pure two-body pseudopotentials cannot generate sufficiently large effective mass, the obtained solutions constitute a preliminary step towards future implementations, which will include, e.g., EDF terms generated by three-body pseudopotentials. ; Comment: 23 LaTeX pages, 8 figures, 4 tables, and supplemental material