At this age with my daughter, we played games that didn't rely too much on books. Two ideas:
*Post-it notes. Write simple three-letter, phonetic words (preferably lower-case) on post-its for items in your house. I.e. rug, cup, box, etc etc. Let her watch you writing the word. If she needs help sounding out each letter, then that's cool. Then let her attach the label to the item. They think it's fun. We played a similar game with action words (i.e. sit, jump, grin), written on pieces of paper and folded, put into a hat.
*fridge magnets. We have a set of fridge magnets and I would write silly, rhyming words on the fridge every morning as a surprise. pig wig. van man. once again, it makes a lot of sense to use lower-case letters.
It sounds like if your daughter is stuck at the putting-it-together stage that tends to come before the sounding it out stage...you can also play this game with her where you say that you're going to take a word apart (verbally) and then put it back together again. Then take words apart and see if she can put them together. M-A-N which would sound like /M/.../A/.../N/ (not "muh" -ah- nuh). She might be confusing the sound of the letter with the sound we often use to denote them (i.e. "b" is technically the sound /b/ not "buh"), making no sense later - i.e. muh-ah-nuh is harder to put together. But taking words apart and putting them back together (verbally, then mentally) is a huge memory hurdle (remembering the sounds, the order they came in). She's almost over it, sounds like.
You can take a pretend trip to the zoo this way, and work up to larger words that are still fairly phonetic.../z/-/e/-/b/-/r/-/a/...fun to play in the car and stuff.