There are some fine tuning you could do but definitely you should not stay in that million dollar house any more. You have to turn that spending into investment. As you are going to retire within 10years yet you have an immediate quarter million spending on kids education, you basically can only do conservative investment.
If you are comfortable managing a property manager, a better way is to invest the $2m into multi-family apartments (you can buy 10 to 20 units in bay area assuming no mortgage, more if you borrow) to have a stable inflation adjusted annual net income more than $80k. This assumes buying and managing at market value without any RE pro.