Originally Posted by islandofapples
So, perhaps I will just keep reading to DD and we will work on learning some sight words and eventually learning some rules when she needs to sound out more advanced words.

Definitely keep reading to your DD. I wouldn't stress learning sight words over phonics. I would just follow her lead. My DD was very drawn to learning phonics first. She was figuring it all out from the beginning and wanted nothing to do with whole word learning. Now, we never did anything like "your baby can read" or flashcards. Maybe if we had she would have went that direction. All I know is that by the time she turned two she saw "cat" as /c/ /a/ /t/, and never just /cat/, even though it seemed to me like it would be super easy for her to just memorize some words. It did come a few months later, which was when I considered her a reader.