My DD8 sounds a lot like your daughter. I'm repeating some of what others have said, but couldn't resist chiming in since she sounds so similar to my daughter. My DD8 loved (and still does sometimes) reading the Barbie Princess books (Fairytopia, Island Princess, etc). She also has read the Little House series MANY times. There's a fantastic fancy book called "Fairytopia" that she begged for and poured over for at least a year. It has flaps to lift, a letter in an envelope, pixie dust, etc.

I also always recommend Usborne books - they are fabulous. I know they have some princess ones, but their non-fiction is actually best. If you aren't familiar with them, they are a home-based business (like Tupperware). Here is my consultant's website in case you don't have one: www.raisereaders.com.

Here are some other of her old favorites from age 5 or so:
--Animal Ark series
--Encyclopedia Brown series
--Disney Fairies series
--The Penderwick's (there are 2 books about them so far - not princess-like, but great wholesome story about a family's adventures) - one of her ALL-TIME favorites!
--Dear America series - historical fiction about America. They are written from the point of view of a young girl (have to watch the content though - she read some about the civil war where it mentioned slaves being beaten-not in graphic detail, but still).
Good luck!