I just wanted to post an update. DH seems finally get it as she has been recently reading quite a lot new words. It is clear to us that she can read words but she shows no interest in reading sentences if she does not have them memorized. I think reading at 2 is so clearly not the norm that he had to admit her being very advanced. He also tested her some math with m&ms and she can can add and subtract some. He tried to mention his mom that we think DD can read and she did not understand what he said, she thought he meant DD is imitating reading a book not really reading. I have not mentioned it to my parents as I think they would think I'm insane.