You have some poor watering habits. No way should you be watering a 16 oz party cup twice a day. Water them well, entire cup not just around the plant, until you get some run off from the bottom of the cup. Then do not water again until the cups feel light, usually like 4-7 days. Remember over watering is caused by watering too frequently. Not by watering too much when they need it.
The first set of round leaves are called cotyledons.