Thanks everyone. While it would be nice if she starts reading soon, the reason for my post was mainly because I was worried if this is normal or could potentially be a sign of a problem. I googled a lot before posting and found tons of info on children that read well but are not good with spelling. I was not able to find anything on the reverse. Also, I thought that children learn how to read first before they spell or write, so I was worried that dd would excel (compared to age mates) on the latter two without the ability to read simple CVC words. I am so happy to read that there are other children like mine.

@Michaela- LOL on the cost/benefit analysis. My dd sure knows how to play that game. She still doesn't self feed (except desserts) and is not fully potty trained because she does not see the need. She was a preemie so I worry about weight gain and willing to feed her instead of letting her starve. Oh well!

@Melessa- I think, like your son, my dd worries that I would stop reading. Every time, I ask for her help in reading a word, she catches on and gets super mad at me and screams,'mom, you know how to read it. You read."

@ElizabethN-I will try your approach and see where that goes. Thanks for the suggestion.

@Dude- It may be performance anxiety for dd as I have seen it before. She practices her new skills alone before she is ready to perform to an audience. I had no idea she could do simple math (add, subtract) until one day she just did a few to amuse me.

@Zen Scanner- I will be sure to ask her pediatrician for referral just to rule it out. She is pretty fast with mazes and puzzles.

@CollinsMom and Puffin- I am in no hurry for her to start reading. Just wanted to make sure this is not something that needs attention. Thanks for your reassurance.

@Ultramrina, Yes, she eats oatmeal for breakfast almost every day and her friend's name is on the school cubby. She did spell Oatmeal as "Otmeal". She can however spell many other long words phonetically that I am not sure she has seen many times before. Like you say, it is interesting to see how this skill develops.

@CCN- Love the idea of notes. Excited to try it.

Thanks again everyone for assuring me that this is normal.