Have you tried any of the "We both read" series? There is a page that parents read and then the child reads the next page, which is written in simpler language. It's kind of a transition from being "read to" to "actually reading" and the kids like that they can do it with you. There are a few different levels, too.
Ditto on the suggestion to just keep reading to her. Sometimes the time snuggling together with a book is more important than the actual skill of reading. My youngest pretended she couldn't read all the way through K because she was afraid that once she could read for herself, I wouldn't snuggle with her and read together.
