Unless your DD is actually getting upset about her inability to read, I would back off completely and just concentrate on reading to her, to develop her listening comprehension and to foster a love of literature and knowledge. Based upon your particular description, I believe that her reading achievement will end up in the same place in a few years whether you interfere or not. There are so many separate abilities necessary for a child to ultimately read a chapter book with comprehension and enjoyment that it may be unwise to unduly focus on some of these early steps. I know of some parents who spent many months (sometimes years) pushing their child through the CVC stage, only to have their child stall for years before the ability to independently read with comprehension simple picture books with multi-syllabic words. It does not appear that you are pushing your DD, so I am simply advising that you don't start yet. My two younger children did not read until kindergarten but each jumped several grade levels within months. For example, the first book that DS read to me was a Maurice Sendak baby chapter book in the fall of K - we skipped over the CVC stage although I am sure that his K classroom provided phonics instruction. Anyhow, DS told me at the time that it was difficult to fully comprehend and think about the story while reading himself so working memory is certainly a factor. Reading a sentence is a far cry from reading a book, even an early reader book.
