How to retract a two week notice at work?

You should talk to your manager, and see if you can retain your current postion. You don't have to say that your other offer was retracted, just tell them that you have reconsidered the situation and would like to continue working for them. As you were a good employee, they should be happy that you have decided to stay, and they won't have to try to find and train someone to replace you. They won't 'look down on you', and after a while, it will all blow over.