Wordpress - Loop through custom taxonomies and display posts

I thought I would provide another answer as the above one is a little hacky, also I added another layer that gets all taxonomies for a post_type.

$post_type = 'post';

// Get all the taxonomies for this post type
$taxonomies = get_object_taxonomies( (object) array( 'post_type' => $post_type ) );

foreach( $taxonomies as $taxonomy ) : 

    // Gets every "category" (term) in this taxonomy to get the respective posts
    $terms = get_terms( $taxonomy );

    foreach( $terms as $term ) : 

        $posts = new WP_Query( "taxonomy=$taxonomy&term=$term->slug&posts_per_page=2" );

        if( $posts->have_posts() ): while( $posts->have_posts() ) : $posts->the_post();
            //Do you general query loop here  
        endwhile; endif;

    endforeach;

endforeach;

It would be recommended to add each post found to a $post__not_in array, so you could pass that to the WP_Query to prevent duplicate posts coming through.