My 3yr 1mo daughter just started reading this week. She probably could have earlier (?) but a few days ago I just picked up an easy "first reader" and pointed to a word, she sounded it out, then I pointed out the next, ect. About 1/2 the words she sounded out and the other half she knew by sight.
First off, this counts as reading, right? I know she's not a fluent reader or anything but she read the whole book and I've picked up some other books around the house since then (which happened to be easier) and she can read them too. I just point to the words and slowly, very slowly, she reads.
She doesn't seem to particularly like getting started but once she is reading she gets into the story and talks about it. Any tips on helping her move past this CVC reading or do I just keep pointing to the words and she will get better? My first child so I have no clue

It's so odd because I just purchased this "hot dots" thing a few weeks ago and since she knew her letter sounds was planning on going through each vowel middle but she already knows how to do it. It just seemed so quick.
I know 3yr 1mo isn't that early to read compared to most kids here (I've heard of a lot of the kids on here reading at 2) but still I guess I'm just surprised at how quick it was? Today she started listing words she knew by sight and I wrote them down for her then showed them to her later and yes, those are the ones she knows (plus others).
So:
-what are some good very easy first readers with a plot?
-Is this just what I keep doing? Having her read to me? (as mentioned, this is my first child so I have no clue)
-Any suggestions?