We propose to use the intrinsic two-level system (TLS) defect states found naturally in integrated optomechanical devices for exploring cavity QED-like phenomena with localized phonons. The Jaynes-Cummings-type interaction between TLS and mechanics can reach the strong coupling regime for existing nano-optomechanical systems, observable via clear signatures in the optomechanical output spectrum. These signatures persist even at finite temperature, and we derive an explicit expression for the temperature at which they vanish. Further, the ability to drive the defect with a microwave field allows for realization of phonon blockade, and the available controls are sufficient to deterministically prepare non-classical states of the mechanical resonator.