I love the idea of making books she can read. I also encourage you to sit at the computer and have her dictate to you what the books should say.
In my son's Kindergarden class, one of their methods of teaching kids to read was to take a familiar book with repetitive words, and change the words themselves a little bit.
Of course she may not really have the 'visual maturity' to actually read a whole paragraph. It's is frustrating in general to have part of your mind read to do a skill and perhaps other parts of your development not ready. We call is 'Asynchrounous Development' (spelling uncertian) and it's a pain.
So, at this age, try to encourage her as she seems to want, figure out how to help her deal with frustration, use humor whenever possible, but most importantly 'keep the joy' in whatever activities you can.
There is a Suess book called 'I can read with my eye's shut.' Your family might get a chuckle out of that. You can encourage her to write 'tiny' books for 'tiny' kids.
Also - read 'Many Moons' by James Thurber. Even though they are 'our children' there is a limit to how much one can 'get inside another person's mind and understand everything about them' so after you read it, ask her what she thinks 'reading' and 'tiny' mean.
Start planning financially for her school years. You may not end up homeschooling her, but your do want to be in a position to use all of possible ways of schooling if you can. I wish there was a book I could refer you to called: 'financial planning for parents of gifted toddlers' (LOL)
Best Wishes,
Grinity
