My sister sent me two great books for my early reader:
Katie Did it!
Big Egg.
Also, I think it's good to practice spelling, as well as reading. My daughter gets practice at school using the Montessori movable alphabet, and at home she gets practice playing TeachMe First Grade on the Ipad, which has pretty impressive handwriting recognition software. Previously she got practice finding missing letters for words in TeachMe Kindergarten. Starfall (available on the web and as an Ipad app) has word-building games, too.
From what I've seen, most early readers memorize everything, and do not decode things phonetically. My daughter had the opposite approach, in which she could apply phonics very well, but would get confused by even the most common words if they didn't follow the rules exactly as she understood them to be. Your daughter's hybrid approach will probably prove very effective. Don't be surprised if she learns to read very well very quickly.
