p.s. for where DD (8) is now, I still can't detect any significant phonics gaps and at school she still doesn't appear to be challenged.
Anyway, at home I try to make sure she is periodically reading books(in between the popular stuff the other kids are reading, within reason) that follow the "five-finger rule" so she is practicing stopping at words she's never seen before and trying to sound them out, understand their meaning and context. I insist on some classics in there, with the original writing so she has a higher chance of seeing words she's not encountered yet. Also if there is any dialect in a book I'll select it for that, since it's stretching horizons.
It's hard when they read young to find challenging books that are emotionally/socially appropriate, but it gets alot easier as they get older. Classics are great.
We also haven't stopped reading out loud to her, she still loves this, and listen to audio books on road trips.
