We have found an early reader series that really works for us. It's the Brand New Readers series published by Candlewick Press. Chickadee was very proud to be able to read one to her Papa tonight. She is half-reading, half-memorizing, but when she forgets, she uses the letter cues to remember.
Dandy is learning to read with phonics. Chickadee's getting mostly 'whole word' with a bit of phonics on the side. We'll see.