I love this topic! We love many of the books above, but I think the following are a good for your daughter's age.
We loved the My Father's Dragon trilogy by Ruth Stiles Gannett
We love Raold Dahl (see James and the Giant Peach and Charlie and the Chocolate Factory above) but I would suggest starting with the Fantastic Mr. Fox and then if your daughter can handle just a bit of scariness, read the BFG. I didn't need to edit these like I did James..
My kids loved the Magic Tree House (Mary Pope Osborne) and the Rainbow Fairies (Daisy Meadows) series, but I don't so much.
My almost 7 year old daughter currently LOVES the Sisters Grimm series and I really enjoy reading it with her.
I've tried Finn Family Moomintroll several times now, but it just seems a bit too weird for us. We can't seem to get past the first 20 or so pages.
We just finished a bunch of Ramona books ourselves and loved them.
ETA Catwings series by Ursula K. Le Guin is also great (and her adult novel The Left Hand of Darkness is one of my favorites)
Edited by jilson41 - 3/25/11 at 12:54pm