We derive, based only on simple principles of renormalization in coordinate space, closed renormalized amplitudes and renormalization group constants at one- and two-loop orders for scalar field theories in general backgrounds. This is achieved through a renormalization procedure we develop exploiting the central idea behind differential renormalization, which needs as the only inputs the propagator and the appropriate Laplacian for the backgrounds in question. We work out this coordinate space renormalization in some detail, and subsequently back it up with specific calculations for scalar theories both on curved backgrounds, manifestly preserving diffeomorphism invariance, and at finite temperature.