Highly improved diffraction properties are demonstrated in a two-dimensional [2D] grating consisting of a transmission grating optically recorded in a semiconductor one-dimensional photonic crystal (1D-PC). Near unity internal diffraction efficiency, high wavelength selectivity, and Bragg diffraction regime operation are demonstrated when the read beam is set at Bragg incidence on the transmission grating while its wavelength corresponds to the band edge of the 3 microm thick 1D-PC. When the 2D grating is grown on a Bragg mirror, a single diffracted beam is obtained, which makes the device promising for optical signal processing.