Yes, you can have it at the house, if your home is big enough to accomodate the number of guests. Another choice, if it's a big wedding, is a local hall (like the VFW) or even a room at the church where the wedding will be held.
Mine was at a historic house, my sister's was at my aunt's house, my cousin's was at the church hall, another's was at a function room of her college ...
Sure, your chef sister can provide all the food. It depends on what time of day the shower is what food there should be, but your sister can help decide that.
There can be silly games, sort of ice-breakers - like see who can make the most words out of the letters in the bride's name ... on other little things like that, with a "prize" for the winner, which can be a small gift.
Make sure you have someone - you or another bridesmaid - assigned to record the gifts, so your sister knows who to thank for what.
And another good idea (from a friend's shower) is having each person address an envelope to themselves when they get there - that will fit the Thank You notes your sister will send! You can have people turn in their "envelope" in exchange for their "party favor" which you will have for everyone anyway!
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