Awesome (and I'm jealous!).
My DS is at 3rd grade lvl in reading/math and is stuck in K learning his letters

We're planning at this point to pull him home next year and see how that goes since at most he would be in 2nd grade (doubtful) and might get to go to 3rd for math. Most likely they would put him in 1st and send him to 2nd for math. Given he's at 3rd now that wouldn't help much.
I'm thrilled that the school is working with you and your daughter and that she found a place she fits in and enjoys. I love that she wants to read as well as her other classmates. She's got a challenge, I imagine it's the first real 'challenge' she's had at school so far. Hopefully it is the 1st of many many challenges to keep her interested and learning!!