Okay so after a whole weekend agonizing over next steps, my dh suggested mentioning to the teacher at drop off that we were puzzled by the progress card and would like to share some stuff with her via email or a direct meeting if she has time. We both wrote down the points we wanted to mention in our email or meeting so I feel prepared. Basically, we are going to ask for her help in getting our dd to come out of hiding and really show what she loves so she can grow her curious mind at school. Since dd is going to have the same teacher next year, we feel it would help if we shared with her info on the dd we know at home. Another thing we did was buy a copy of the brain quest workbook that the teacher mentioned she uses at school. The store did not have the pre-k/k version that she uses but a first grade version. Dd leafed through it at the store and declared that we should buy that instead of k as she can easily do this stuff. A good news, dd started to read whole sentences this weekend. I wrote about 10 sentences for her using a mix of phonetic and sight words and while she was slow, she read them all without any help. She is excited that soon she would be able to read 1200 pages book- yeah big dreamer I know. Thanks everyone for your help.